'Mortgage insurance' is a term that you will surely come across if you are going for a mortgage loan. Let's get straight into finding out what this term ('Mortgage insurance') means.
Mortgage insurance is a great tool for both the borrower and the mortgage lender. by definition, mortgage insurance provides protection to the mortgage lender in case the borrower defaults on the mortgage. Mortgage insurance covers the loss that a mortgage lender can incur in such a circumstance. So besides taking title to property, the mortgage lender is also protected against loss by mortgage insurance. the premium of this mortgage insurance is obviously paid by the borrower and there are different ways in which the borrower can pay this mortgage insurance premium e.g. one way is to include it as part of the monthly mortgage payments that are made to the mortgage lender (who in turn passes on the amount to the mortgage insurer).
However, how does mortgage insurance provide benefit to the borrower?
Since mortgage is a big financial transaction, the mortgage lenders need to safeguard their interests in all possible way. So, mortgage lenders require the borrower to demonstrate their commitment to the investment. one way of showing this commitment (and the ability to pay monthly mortgage payments) is to make a down payment. the mortgage lenders generally ask for a down payment of around 20%. However, if the borrower goes for mortgage insurance, the down payment amount may be significantly reduced by the mortgage lender. So, a borrower might be required to pay only 5% or 10% as mortgage down payment instead of the mandated 20% or whatever. This means that mortgage insurance is especially good for people who don't have enough cash to make large down payments (as such 20% is quite a big amount in itself). Such people can save on cash by going for mortgage insurance. Moreover, since mortgage insurance provides a lot of confidence to the mortgage lenders (in terms of their investment being safe), the processing of your mortgage application could be faster and smoother than what it would have been without mortgage insurance commitment. So not only does mortgage insurance increase the buying power of a borrower it also provides him/her with benefits in terms of getting a good mortgage deal and getting it faster.
So, mortgage insurance is really advantageous both for the borrower and mortgage lender and the onus lies on the borrower to hunt for a good deal on mortgage insurance and also on the mortgage itself.
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ANONYMOUS - You state: "Mortgage Loan Purchase agreement — is simply that — an agreement for pass-through of “loan” receivables."
Yet, what is it about the words, "Mortgage Loan Purchase" imply that the agreement is NOT about "purchasing mortgage loans" but instead "an agreement for pass-through of “loan” receivables." Regardless of whether anybody reads the following pages of the "agreement," isn't the "intent" right there in the title of the agreement in rather plain English?
Neil, thoughts on this ongoing dispute between you and ANONYMOUS?
Decrease Monthly Mortgage Payments with 75 Billion Dollar Federal Loan Modification Program
[...] If you contribute less than 20% of the home price as a down payment you will typically need a high-ratio mortgage. This type of mortgage usually requires mortgage loan insurance, of which CMHC is a major provider. Your lender may add the mortgage insurance premium to your mortgage or ask you to pay it in full upon closing. (Refer to Step 2 for details.) [...]
U.S. Bank - Fargo, ND - Title: Mortgage Loan Originator - Fargo, ND Location: North Dakota-ND-Fargo Originates mortgage loans in an assigned territory; develops referral relationships with realtors, builders, bankers, and other sources in order to proactively solicit business and conduct sales-related activities, frequently outside of U.S. Bank locations, in order to meet specific loan volume origination goals. Counsels
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is there a cap on interest rates for mortgage loans?:
Flock To Offer More Social Web BrowsingToday, at the Web 2.0 conference in San Francisco, a California startup is set to announce a new Web browser based on open source Mozilla technologies, the software at the core of the popular FireFox browser.Hey, you have a nice blog here! Awesome job. I have a mortgage loan site. It pretty much covers mortgage loan related stuff.Come and check it out when you get time
FHA : Monthly Mortgage Insurance Premiums To Rise April 18, 2011 -
Martha, If you purchase the home just in your name then you would qualify. But, this means getting your mortgage loan ONLY in your name. If your husband is on the mortgage loan and/or he is using the new home as his primary residence then you will not qualify for $8,000 tax credit. I'm sorry. But, you should also check with a an accountant or qualified tax preparer before making any final decisions. Good luck!
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Greetings to All!
I look forward to sharing and exchanging information with everyone!
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Martha, If you purchase the home just in your name then you would qualify. But, this means getting your mortgage loan ONLY in your name. If your husband is on the mortgage loan and/or he is using the new home as his primary residence then you will not qualify for $8,000 tax credit. I'm sorry. But, you should also check with a an accountant or qualified tax preparer before making any final decisions. Good luck!
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RT My fish tanks maintenance costs are higher than your mortgage loan.
This is hysterical. As Eric Cartman says:
Respect
my
aw-thor-i-TAY!!
How about:
"Regardless of a home's perceived potential for profit and one's delusions of ability to support the monthly mortgage payments after the payments recast/reset, no one has the right to saddle his fellow taxpayer with the bailout costs of his irresponsible behavior. Please Respect Responsible Homeowners."
Eventually, cities (and taxpayers) will be saddled with the costs of demolishing a lot of foreclosed homes. So what's the problem with getting a headstart for free?
[...] There is a lot of talk these days from all lender, the FDIC and both Fannie Mae and Freddie Mac with regards to mortgage loan modification. I think its great that these companies and institutions have stepped up to help homeowners but I have also found that many mortgage loan modifications can be potentially dangerous. You can find out more information on that topic in this post on Mortgage Loan Modification Terms. [...]
New post: Is there a mortgage insurance premium charge at closing for conventional loans?
[...] Fees are regulated and only HUD allowed fees are permitted with no mark-ups or junk fees. Even though many times they are considered expensive or high they compare to conventional loans, in fact the difference comes down to the FHA Mortgage Insurance Premium. You can see a comparison of the costs in my article, “Reverse Mortgage Costs – High or Mythical?” and “Do You Understand The Reverse Mortgage Closing Costs?” [...]
Monthly mortgage payments are the buyers choice not the sellers. The market will dictate. Foreclosures have already lowered house prices because they have increased supply. If left alone the market will correct itself over time. That does not mean people will be homeless just that they will live within their means. That's a choice. I live in a tin roofed shack but have no mortgage. It's my choice. It is not compassionate to enable people to live beyond their means.
The whole point is moot anyway. Obama to the rescue. He's buying votes but exasperating the core problem.
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"The evidence suggests that both subprime mortgage lenders and subprime mortgage borrowers influenced government policy toward housing finance during the subprime mortgage credit expansion."
Is that the blockbuster revelation, you are pointing too? One would think that democratic theory of governance would have already supplied that expected explanation.
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I took out a mortgage loan so I could live in a house.
I dont see whats so confusing here.
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Fine. Let the bubble finish bursting. Real Estate and Residential Lending are the most crooked industries in our history. Mortgage lenders on cocaine and bait and switch terms, speculator vultures flipping house with no intention of investing in the communities. I'm glad to see the collapse and the house of cards was built on sand. Homes should be built for people that need them...not for vulture speculators or sheister mortgage lenders.
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