Orange, California (PRWEB) August 05, 2013
Mortgage insurance allows home buyers and homeowners to take out a home mortgage loan for greater than 80% of the value of the home that is being used as security for the loan.
One of the many victims of the mortgage crisis was the availability of Private Mortgage Insurance (PMI). Up until recently, the options for borrowing more than 80% of the value of your home was limited to perfect credit, low debt to income borrowers, or FHA financing.
As the only mortgage insurance game in town, FHA insured mortgages have become incrementally more costly to the point where, as of June 3rd, 2013, mortgage insurance is permanent for anyone borrowing greater than 90% of the value of the home.
In 2013, we are seeing many Private Mortgage Insurance (PMI) changes that are more in line with pre-mortgage crisis availability and borrower options.
Private Mortgage Insurance (PMI) has many advantages over FHA Mortgage Insurance Premiums (MIP).
For example, it can be removed after 20%, there's no upfront cost, and the rates are based on the loan to value. This is not always the case with an FHA loan.