Mortgage Insurance
All home buyers can benefit from mortgage insurance. Mortgage insurance allows homebuyers to purchase a home with less money down. Mortgage insurance is a way for a lender to get back its investment if you are unable to pay off your debt. Lenders often require a 20% down payment on a loan without mortgage insurance, but with one lender, they generally let the buyer pay 5% or 10% down payment. With this benefit for home buyers, it will allow them to become homeowners sooner. Mortgage insurance is temporary; consumers can cancel it when their equity reaches 20%. There are different types of mortgage insurance that consumers should know about; if you are not sure which one fits your financial situation let our mortgage brokers help.
Benefits of Mortgage Insurance
• Monthly or zero monthly has a one month coverage term. There will be a decrease in your mortgage payment by the amount of the premium, when you are able or choose to cancel your mortgage insurance.
• Single premium usually results in a lower monthly payment because the mortgage is amortized over a long period of time. Before the coverage period ends and you decide to cancel your mortgage insurance, you may receive a cash refund.
• Lender paid or "no MI", it is simply paid by the lender. Through the increase in the interest rate on the loan, the mortgage insurance premium is covered by the lender. This type of mortgage insurance program carries no refund potential, and borrowers may not cancel.
• Homeowner’s mortgage protection lessens the extra fees and paperwork of combo loans, and just simply offers low fixed monthly cost.
Contact Us for Mortgage Insurance Today
Mortgage insurance is a win-win solution for both the consumer and mortgage lender. Mortgage Insurance allows you to purchase a home years sooner. For more information on mortgage insurance come and talk to one of our knowledgeable mortgage brokers today. You may contact us through EWMortgage.com, our toll-free number 1-800-880-4202, or simply stop by the office at anytime.
