Should or shouldn’t you purchase brokers insurance in Henderson? The answer is an easy one. There are rules that make the decision for you. The number one requirement you have to meet when refinancing your home is that if you make a down payment on a home that totals less than 20 percent of either the appraised value or the sale price; then the rules are very clear – the law states that you must have mortgage insurance.
Mortgage insurance is often labeled “private” mortgage insurance. The reason for this distinction is to differentiate it from FHA or VA insurance which is handled by various government agencies. Solely dependent upon the amount of the down payment as well as the loan, “private” mortgage insurance usually costs approximately one half to one percent of the loan.
Mortgage Brokers Explain How Mortgage Insurance Benefits Homeowners
Protection for both Lender and Borrower. When a homeowner opts to pay “private” mortgage insurance, the borrower is required to pay premiums; however, it is the lender that becomes the beneficiary. This means that because the lenders are protected against default, even if a homeowner stops paying the premium, they will still be paid. This protects both parties due to the simple fact that with “private” mortgage insurance to back them up, lenders are more willing to grant the loan in the first place. If a borrower stops paying on a mortgage, the insurance company will ensure that the lender will be paid in full.
Mortgage Brokers Flexible Terms
The most significant benefit homeowners receive by purchasing “private” mortgage insurance is they gain access to flexible terms on their payment plans. In essence, what this accomplishes is that homeowners are given the flexibility they need to make these payments. A reputable henderson mortgage company will give borrowers the options of setting up monthly payments, setting up a single payment or to make annual payments. They will also make sure homeowners are offered lender-paid mortgage insurance programs.