Mortgage insurance can come in many forms- it’s not “one size fits all”!
Not all buyers have to pay monthly traditional mortgage insurance.
Also, mortgage insurance rates are based on credit score- those with higher credit scores are paying slightly less in mortgage insurance.
For home buyers with 10% or more downpayment- financed mortgage insurance may be the better way to go- I just compared traditional monthly mortgage insurance to fiananced mortgage insurance for a buyer and the payment was almost $33/month less!
Financed mortgage insurance rates are in the form of points based on the loan amount and dependent upon credit score and loan to value. This can be “rolled into” the buyers loan or paid by the seller
Monthly mortgage insurance works well for those with smaller downpayments and is required on FHA loans. FHA loans have an upfront mortgage insurance premium that is rolled into the buyers loan in addition to the monthly mortgage insurance.
USDA Rural housing and VA loans have No mortgage insurance and 0 downpayment required, but do require upfront “funding fees” that are added to the loan amount/sale price.
Check with your financial advisor/tax accountant to determine PMI tax deductibility.
First Place Bank offers purchase, refinance, construction, lot loans, bridge loans, investment property loans, FNMA Homepath loans, FHA, VA or USDA Rural housing loans.
For an application or preapproval- call 440.452.3894 or online 24/7 at www.firstplacebank.com/lizschneider