In today s market, buyers are in the best position to buy a house at an affordable price with an affordable interest rate on their mortgage. With the housing market taking a downturn, today is when you should be looking to purchase a home. However, you may be confused about the options available to you with your mortgage. You will get a mortgage interest quote as well as a mortgage insurance quote if you choose certain mortgages. Here is some information to help you decipher your mortgage insurance quote.
What Is Mortgage Insurance?
Your mortgage insurance quote is the price you will pay for your mortgage insurance. The most common mortgage is the first time home owner s association mortgage, or an FHA mortgage. These insurances require that you get mortgage insurance with your mortgage. A mortgage insurance quote will tell you how much you are going to pay for your mortgage insurance, which is the insurance policy that will protect the lender during the course of the mortgage. Lenders will be protected against the losses that happen when people default on their mortgages. In many cases in addition to FHA loans, buyers will be required to purchase mortgage insurance if they are putting less than twenty percent down on their loan.
What Is Included In Your Mortgage Insurance Quote
Your mortgage insurance quote will tell you exactly how much you are going to pay. The mortgage insurance charges half a percent per year of the loan amount. The homeowner pays this each month. Also, FHA loans will charge a mortgage insurance premium of a percent and a half of the loan amount.
Finding A Mortgage Insurance Quote
When you are getting a mortgage insurance quote, you really do not need to compare mortgage insurance quotes. Because the insurance is based on the loan that you are taking out, the quote should be the same at every place you look for your quote.
When The Mortgage Insurance Ends
Your mortgage insurance payments will end after several conditions occur. First, if your loan is for more than fifteen years, the payments for your mortgage loan will cease after the loan to value ratio is seventy eight percent, as long as the homeowner has paid the premium each year for at least five years. In addition, payments will stop for mortgages that are fifteen or less years and have a loan to value ratio of ninety percent when the loan to value ratio reaches seventy eight percent, no matter how long the homeowner has paid the premiums. Finally, mortgages that are fifteen years or less and have a loan to value ratio of 89.99% and less will not have to have mortgage insurance.