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How does Mortgage Insurance Work?

April 20, 2021 by Kyle Adanza

Many people have questions about mortgage insurance, the different types of mortgage insurance, and how it works. In this article, we will answer all those questions.

What is Mortgage Insurance?

Mortgage insurance protects the lender or titleholder if the borrower dies, defaults payment, or becomes unable to meet the mortgage contract's agreements. Mortgage insurance can be on a conventional loan (Freddie Mac or Fannie Mae), FHA Loan, or VA Loan. So how does mortgage insurance work for the various loan types?

VA Loan – it has a one-time upfront fee known as a funding fee. You can roll it into the price of the home. You do not pay mortgage insurance premiums every month.
FHA Loan – the mortgage insurance (MI) stays with you for the entire time the loan remains in existence. Generally, one pays a qualified mortgage insurance premium. With FHA loans, everyone has to pay the mortgage insurance regardless of their down payment.
Conventional Loan – it is popularly known as Private Mortgage Insurance (PMI). Ideally, if you put down 20% of the loan, you will not have PMI. Any value that is less than 20% will have PMI. Typically, the lesser the money you put down, the higher the PMI will be. Always remember that mortgage insurance protects the lender and not the borrower. The lender arranges the PMI and a private insurance company provides it. If someone is refinancing with a down payment of less than 20%, they will also pay PMI.

Generally, you do not have to pay 20% at once. You can pay in installments. Once you attain a 20% equity in the home you are buying, you can initiate talks with the mortgage insurance company to do away with the mortgage insurance premiums.

Some mortgage insurance companies will do the calculations in-house and scrap off the mortgage insurance, but others will want to do an appraisal. They will require you to pay for the appraisal, but it is quite affordable – around $300 or $350.

Mortgage Title Insurance

Mortgage title insurance protects in the event a sale gets invalidated later on due to a problem with the title. Generally, a beneficiary is protected in case the person selling the property is not the actual owner of the home.

Mortgage Life Insurance

Before getting the loan, every borrower needs to understand the risks associated with having a mortgage. As such, borrowers have to fill through the mortgage protection life insurance. A borrower can decline the mortgage protection life insurance, but they will have to sign several waivers and forms to verify their decision.

Generally, mortgage life insurance protects the policy holder’s loved ones in case the policy holder dies before paying off the mortgage. Your loved ones will be paid a lumpsum to enable them clear the mortgage debt to ease their financial burden.

Bottom-line

Mortgage insurance works to protect lenders in case the borrower is unable to meet the contractual obligations of the mortgage. You need to talk to your loan officer to know the type of mortgage insurance that applies to you.

Related Videos

For More Information Contact Me:

Website: http://www.tampa2enjoy.com/search-homes/

Call: (813) 317 – 4009

Email: lance@tampa2enjoy.com

YouTube: https://www.youtube.com/user/Tampa2Enjoy

Podcast: https://redcircle.com/shows/expert-real-estate-tips-lance-mohr

Tampa Realtor – Lance Mohr

March 26, 2021 by Kyle Adanza

If you’ve ever bought a home in Tampa or put your home on the market for sale, you’ll know that buying or selling a home in Tampa is among the hardest things you’ll do. Buying or selling a home is not a single action, but rather a long and stressful process with many challenges along the way.

If you are getting ready to buy or sell a home in Tampa, it’s best to work with a professional Tampa realtor. Hiring a qualified and experienced realtor in Tampa can mean the difference between getting the best deal and getting scammed, especially at this time when scammers are targeting real estate buyers and sellers.

With the many horror stories of what could go wrong with home buying and home selling in Tampa, you don’t want to take risks. Working with the best real estate agent in Tampa can make the whole process much more smooth and hassle-free.

What are the benefits of hiring a professional realtor when you buy or sell property in Tampa?

Years of experience

No one understands the Tampa real estate market better than an experienced real estate agent. With years of learning the ins and outs of the real estate market in Tampa, an agent knows what buyers are looking for, where to find Tampa homes for sale, and all aspects of the housing market.

Price guidance

For someone without experience in home buying and selling in Tampa, it will be difficult to accurately determine a home’s true value. This is where a South Tampa Realtor comes in to help you buy at the right price or sell for the optimal price.

Negotiation skills

With their experience in property buying and selling, Tampa realtors have impressive negotiation skills alongside an understanding of the current market trends.

They will look at the merits of the property and strive to get you the best possible price, whether you’re buying or selling property. Even if you’re good at negotiation, it helps to have a real estate agent on your side.

Save time

Buying or selling property is typically a lengthy process. Everything that’s involved from prequalification and negotiation to inspections and closing can be overwhelming for someone who’s not experienced.

Whether you’re buying or selling, a professional Tampa real estate agent will handle everything on your behalf, making the process more convenient and stress-free. This will free up more of your time to focus on other things that are important to you.

Many things can go wrong with home buying and selling in Tampa when you’re not represented by a Tampa Realtor.

If you’re looking to buy, rent, or sell property in Tampa, let MOHR HOME GROUP help you through the process. We are Tampa real estate experts with unrivaled expertise and experience in real estate buying and selling.

If you’ve been searching for the best real estate agent in Tampa realtors directory, your search has come to an end. Contact MOHR HOME GROUP and let us guide you through the process.

Related Videos

For More Information Contact Me:

🌐 Website: http://www.tampa2enjoy.com/search-homes/

📞Call: (813) 317 – 4009

📧 Email: lance@tampa2enjoy.com

YouTube: https://www.youtube.com/user/Tampa2Enjoy

Podcast: https://redcircle.com/shows/expert-real-estate-tips-lance-mohr