Tag Archives: Mortgage insurance

When the time comes to purchase a house there are many options available. For lower-income families, Federal Housing Administration (FHA) loans can be a good way to buy a home. FHA loans are technically not loans. Rather, the FHA insures loans so that lenders can offer mortgage assistance to people who otherwise might not qualify for loans, including people with poor credit, those who do not have much money available for a down payment, people who have undergone bankruptcy, and those who have had previous homes foreclosed.

The FHA program has existed since the Depression era to help encourage the housing market by making loans affordable. Since that time, FHA loans have helped military families, the elderly, the handicapped, and low-income families. All people are eligible for FHA loans, but not first-time homeowners. Because it requires a low down payment and accepts people with imperfect credit, it is the easiest kind of real estate mortgage loan to qualify for. Another advantage of FHA loans is that they are assumable, which means that if you sell your home, the buyer can take over the existing mortgage. FHA loans can be used both for a home purchase and in order to refinance your home. Continue reading

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In the last few years the state of Texas has seen a lot of foreclosures, and it’s been hard for consumers to get approved for loans. With the new low interest rates that are available to consumers, and the low cost of housing, this is the best time to make a home purchase. The low interest rates are helping some people get approved for home loans, and this is helping the state of Texas move in the direction of a housing recovery. The first thing to do is talk with a home mortgage lender that you want to use.

Talk with the lender about your current credit score, your income, your debt to income ration, and how all of these things are going to affect your ability to get a home loan. The loan officer will type in the numbers to see what you can get approved for. With a low interest rate consumers can afford more on their home mortgages. Most lenders are going to require that the buyers put mortgage insurance into their payment, to avoid foreclosures, but this is worth the cost. This insurance is going to keep homeowners in their homes. There are also tax deductions that come with purchasing a home right now, which makes buying even more appealing. Continue reading

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The fees associated with the cost of up-front mortgage insurance premiums increased by about 75 basis points in April of 2012. This increase is to help replenish the insurance fund for the FHA and will apply to only a 30-year single family FHA loan. However, some fees will go down.

The up-front fees for refinancing will decrease to 0.01 percent from the current 1 percent and will begin on June 11. Starting on April 9, 2012, the upfront mortgage insurance premium for buyers will increase to 1.7 percent from 1 percent. The monthly insurance cost will increase 0.10 basis points.

The purpose of lowering refinancing fees is to make the home refinance process easier. However, using this process requires borrowers to be current with payments. The increase of fees is estimated to add up to $1 billion to the Federal Housing Administration insurance fund by 2013. A new home buyer will be paying $5 more per month for a $150,000 FHA loan. Continue reading

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As the housing market stabilizes, many more people are looking to FHA to get a loan. Unfortunately, FHA mortgages will become more expensive. This is based on a recent announcement by FHA that mortgage insurance premiums will increase. Changes are … Continue reading

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Just when the mortgage approval looks like it is money in the bank the lender requests another tri-merge credit report 72 hours before closing. The family credit picture has changed since the first report. The applicant may have a problem … Continue reading

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Private mortgage insurance protects the lender from losing money if the borrower defaults on his or her mortgage. If the borrower defaults on the mortgage a percentage of the insurance money is paid to the lender. Private mortgage insurance is … Continue reading

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Hurricanes are often bad news for those interested in mortgage insurance. They can make it harder to get lower home prices. Houston lenders, for example, will be harder to negotiate with for reasonable mortgage insurance. Hurricanes may break lives in … Continue reading

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Mortgage insurance, also known as financial guaranty, or mortgage indemnity guarantee, is an insurance policy that protects the bank and the debtor from delinquency. This indemnity is usually purchased at closing and guarantees the lender that the conditions of the … Continue reading

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