All Posts Tagged With: "private"
How Do We Get Rid of the FHA Mortgage Insurance Premium?
Question: I bought a home with FHA financing. We have a monthly insurance premium (MIP) with each payment. How do we get rid of this cost? Answer: When you bought your home you purchased with little money up front, perhaps 3.5 percent down. This means a lender put up as much as 96.5 percent of [...]
20Oct2008 | Peter G. Miller | 1 comment | Continued
Why Do We Need Private Mortgage Insurance?
Question: We’re buying with 10 percent down. Our lender says we can get a loan but only with private mortgage insurance. What is private mortgage insurance and why do I need it. Answer: Lenders want as little risk as possible when they make a loan — a not-unreasonable position. To limit their risk they want [...]
2Sep2008 | 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
Can I cancel private mortgage insurance (MI)?
In the usual case, buyers who purchase with 20 percent down or more do not need private mortgage insurance (MI). For those who have MI, there are monthly premiums as long as the insurance is in place. Under the Homeowners Protection Act of 1998 (HPA), when a loan balance is paid down 22 percent from [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Can we use private financing to buy real estate?
In theory, yes. In practice, few homes are financed with loans from sellers or other individuals. According to a 2010 report by the National Association of Realtors, 96 percent of first-time buyers, 86 percent of repeat purchasers and 91 percent of all buyers required financing. These numbers suggest that very few buyers have friends, relatives, [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
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