All Posts Tagged With: "pmi"
How Can We Slash Mortgage Insurance Costs?
Private mortgage insurance companies are the private-sector equivalent of the VA and FHA. Such insurance allows individuals to borrow with little down — but only if they pay a premium for such coverage. How It Works Some important points about private mortgage insurance (MI) include: MI companies are state regulated, not federally regulated. State regulation [...]
26Apr2010 | Peter G. Miller | 0 comments | Continued
How Do Private Mortgage Insurance and Mortgage Life Insurance Compare?
In terms of real estate, when we talk generally of “private mortgage insurance” or MI what we mean is a situation where insurance is used to secure financing when a 20-percent down payment is not available. In other words, the insurance is there in lieu of cash from a borrower. If the property is foreclosed, [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
How Are Private Mortgage Insurance Premiums Set?
MI rates are based several factors. • The percentage down. The more down, the lower the premium (because there’s less risk). • Whether the loan is fixed or adjustable. ARMs are seen as more risky than fixed-rate loans, so rate for adjustable loan products are higher than fixed-rate mortgages. • Lump sum or monthly payments. [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
How Do I Select A Private Mortgage Insurance Provider?
The lender chooses the private mortgage insurance (MI) company since it, the lender, is the beneficiary of the policy. Technorati Tags: insurance, mortgage, pmi, private
28Aug2008 | Peter G. Miller | 0 comments | Continued
How Do FHA and MI Premiums Compare?
Private mortgage insurance (MI) premiums are generally paid on a monthly basis. Except for so-called “high risk” loans, coverage can be stopped once an owner has paid down at least 22 percent of the original loan amount. In practice, many lenders will allow borrowers to discontinue MI once they have 20 percent equity — the [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
How Can I Avoid Private Mortgage Insurance Costs?
One strategy is to buy with 80-10-10 financing — an 80 percent first loan, a 10 percent second and 10 percent in cash. These are so-called piggy-back loans or simultaneous seconds. However, because of a large number of foreclosures piggy-back financing is now difficult to get. Or, 75-15-10 financing — 75 percent from a first [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Why Do Private Mortgage Insurance Companies Need To Approve My Loan?
A private mortgage insurance (MI) company provides assurance to a lender that a portion of your loan and associated costs will be re-paid in the event of foreclosure. Such insurance is required by residential lenders when buyers purchase with less than 20 percent down. A private insurance company is interested in your credit, income, and [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
When Can I Cancel Private Mortgage Insurance?
Question: Can I get a straight answer to a question? I want to cancel my private mortgage insurance (MI). I bought a home for $280,000 and borrowed $250,000. The property is now worth no less than $350,000. I have at least 20 percent equity and yet the lender will not allow me to cancel my [...]
22Aug2008 | Peter G. Miller | 0 comments | Continued
Are Fees For Private Mortgage Insurance Deductible?
Yes. In the closing hours of the 109th Congress a long-time irritation was resolved: Fees for mortgage insurance will be tax-deductible for huge numbers of homeowners beginning in 2007. Mortgage insurance has been the key to homeownership for millions of buyers. Unlike other forms of insurance, mortgage insurance does not protect against some future and [...]
20Aug2008 | Peter G. Miller | 0 comments | Continued
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