- INDUSTRY NEWS -
MORTGAGE INSURANCE
BY AMBER CLAVELLE
I’m sure most prospective homeowners like the idea of putting little to
nothing down when purchasing a property, but doing so isn’t without
its drawbacks. In fact, it can cost you quite a bit of money if you don’t
come to the closing table with a sizable down payment. Aside from
having a larger mortgage payment, you might also be hit with an
extra form of insurance. Let’s go through some of the most common
questions about Mortgage Insurance and when and if it affects you.
WHAT IS IT FOR & WHO PAYS?
For those of us who aren’t able to come
to the table with tens of thousands of
dollars for the down¬ payment on a
home, mortgage insurance is usually
in the cards. Either the borrower or
the lender can pay mortgage insurance
premiums.
WHAT ARE THE DIFFERENT TYPES
OF MORTGAGE INSUR ANCE?
of mortgage insurance. If the down
payment is less than 20 percent of
the sales price or appraised value of a
home, the buyer is usually responsible
for paying mortgage insurance. As a
borrower, you pay the premiums and
the lender is the beneficiary.
WHEN IS PRIVATE MORTGAGE
INSUR ANCE REQUIRED?
M