This article applies to Conventional mortgage loans only. As of this writing, FHA mortgage insurance cannot be removed, it is required for the life of the loan. WHY MORTGAGE INSURANCE? Mortgage insurance (MI) is required at the time that the mortgage was originated, if there was not sufficient equity in the property. Typically if the […]
New Condo — Close to parents !
November 22, 2013 by
Peter & Grace were naïve 1st time homebuyers who didn’t know where to start. They had a 1 yr old son and another baby on the way, so they knew they would quickly outgrow their small space. Since they barely had a 3% down payment, they were concerned about the mortgage insurance (MI) that they […]
Getting Rid of Mortgage Insurance
September 26, 2013 by
Mortgage insurance (MI) is something that was probably forced it upon you. It may have been necessary at the time, however, it may not be necessary to any more. With a conventional loan, by federal law, MI drops off when the loan is paid down to 78% of the original sales price. With FHA, depending […]
Why do I Need Mortgage Insurance?
September 3, 2012 by
Mortgage Insurance – M.I. or no M.I. – that is the question What is it ? – Insurance that pays the lender in the case of default (non-payment)… that the borrower pays for. Why would I want it ? – It’s not likely that you would elect to pay Mortgage Insurance you had a choice. […]
