Mortgage Insurance
Mortgage Insurance Deductibility and 2013
January 15, 2013 by Financemyhome · Leave a Comment
Yipee. Mortgage insurance is going to be deductible again in 2013. See the rules and see if you qualify, as not everyone or every type of insurance is eligible. Here is a link: http://www.mgic.com/ordering-mi/tax-deductible.html
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Mortgage Insurance
FHA to Cost Borrowers More In The Future
December 10, 2012 by Financemyhome · Leave a Comment
FHA has announced a major change to its loan program which allows borrowers to cancel the mortgage insurance premium (MIP) when their unpaid balance reaches 78% of the original purchase price. While no specific date has been set for the change, sometime in 2013, new FHA loans will require the mortgage insurance for the life of the loan.
At existing rates, the monthly MIP on a $168,875 mortgage is $178.99 per month. Under the current rule with normal amortization, the MIP would no longer be required in 9 years and 9 months. However, under the new rule, it would last for the entire 30 year term.
They also announced that the annual MIP will also be increased from 1.25% to 1.35% at some point in the near future. HUD, the parent agency for FHA, is making the changes to restore the capital reserves of the program that are needed to fund failed loans.
People that can close a FHA loan before the change takes place will fall under the old rules for canceling MIP and the lower rates. Since no date was announced, it is not known exactly when the changes will take effect.
While this information will probably not make the evening news, it will have a big impact on borrowers planning to use an FHA loan. Please pass it on to anyone you know who might be considering purchasing or refinancing with a FHA loan. There may a conventional loan alternative-call me to discuss.
Sincerely,
RE/MAX Results
John Mazzara
7300 France Ave S #410
Edina, MN 55435
Off-952-929-2577
Cell-612-386-7027
Fax-952-928-3799
Google Voice- 952-491-0884
john@johnmazzara.com
http://www.MinneapolisStPaulHomes.com
Watch my Youtube video on how I sell a home:
http://www.youtube.com/watch?v=oz1zGDOXcoQ
RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI
NMLS # 332556
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Mortgage Insurance
Gifts and Grants can be considered towards borrowers funds on certain 3% down conventional loans
March 14, 2011 by Financemyhome · Leave a Comment
Yes, you read that right. I just got an email today from a leading mortgage insurance company that is willing to underwrite this loan. You will need at 740 or better score. But, what an opportunity. In many ways, this is like FHA, but with a little higher credit threshold. The KEY difference, besides credit score, is the lack of an upfront MI (mortgage insurance) premium and as well as a smaller required monthly premium. This product could be a game changer for the MI company and conventional loans.
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Mortgage Insurance
Mortgage Insurance May Still Be Deductible For Some Buyers
January 6, 2011 by Financemyhome · Leave a Comment
Yipee-It looks like mortgage insurance will remain deductible for some home buyers. When we look buying a home, you need to consider all aspects. One main one is mortgage financing. There are ways around mortgage insurance by doing split loans-like and 80/10/10 for example or LPMI-which stands for lender paid mortgage insurance-which means the interest rate is higher. Rather than confuse the matter with all the options-some of which may have no bearing on your situation-just give me a call. I would be happy to help you do an analysis so you can make the right choice. Click the link below to read the latest news about MI(mortgage insurance)
http://www.mortgageinsurance.genworth.com/pdfs/Marketing/MITaxDeduct-Consumer.pdf
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