Tag: Mortgage

Mortgage Protection Insurance: When You Might Need It

Before you accept the responsibilities of taking on a mortgage that spans several decades, there’s an option you might consider to protect the home from foreclosure in case you’re not able to make the monthly mortgage payments.

Mortgage protection insurance (MPI) protects homeowners if a health issue arises and they become disabled, or a job loss is lengthy. In the worst-case scenario, this type of coverage can pay off the balance of the mortgage if the borrower dies.

MPI can be a safety net for some homeowners while others may view it as an unnecessary expense that will drain an already tight budget. Deciding whether to purchase a mortgage insurance policy depends mostly on your health and financial circumstances.

What is mortgage protection insurance?

MPI policies basically function as a type of life or disability insurance. The cost of the monthly premium varies, depending on the amount of the loan

Read More

FHA Requirements: Mortgage Insurance for 2020

Mortgage Insurance (MIP) for FHA Insured Loan

Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.

2020 MIP Rates for FHA Loans Over 15 Years

If you take out a typical 30-year mortgage or anything greater than 15 years, your annual mortgage insurance premium will be as follows:

Base Loan Amount LTV Annual MIP
≤ $625,500 ≤ 95% 80 bps (0.80%)
≤ $625,500 > 95% 85 bps (0.85%)
>$625,500 ≤ 95% 100 bps (1.00%)
> $625,500 > 95% 105 bps (1.05%)

2020 MIP Rates for FHA Loans Up to 15 Years

Homebuyers who can afford to pay off their loans quicker and opt for a shorter term, such as a 15-year mortgage, will benefit from lower mortgage insurance premiums, as follows:

Base Loan Amount
Read More

Finance of America Mortgage

©2019 Finance of America Mortgage LLC is licensed nationwide |  | NMLS ID # 1071 (www.nmlsconsumeraccess.org) | 300 Welsh Road, Building 5, Horsham, PA 19044 | (800) 355-5626 | AZ Mortgage Banker License #0910184 | Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee | Illinois Residential Mortgage Licensee | Kansas Licensed Mortgage Company | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker — NYS Banking Department | Rhode Island Licensed Lender.

Loans made or arranged pursuant to a California Finance Lenders Law license.

Pre-approvals are based on underwriter review of credit and income documentation only. A pre-approval is not a loan approval, rate lock, guarantee or commitment to lend. An underwriter must review and verify a complete loan application after you are preapproved in order to qualify.

This is not a commitment to lend.

Read More

Compare Our Best Mortgage Rates

Mortgage term: most people opt for a 25-year term when they take their first mortgage out – but you can choose a longer or shorter period of time. If you opt for a longer term, your repayments will be lower but it will take you longer to pay off the debt. The shorter the term, the sooner you’ll be mortgage free. So the shortest term with the most affordable fee is often a better option.

Deal length: given that most mortgage products have an early repayment charge (ERC) if you end the mortgage deal early, it’s important to think about how long you’re happy to tie yourself in for. For example, if you think you might move in the next few years, you’d be better off going for a two or three year product rather than locking into a five year product. It can cost thousands of pounds to get

Read More