How did “mortgage insurance” ever get such a bad rap? Mortgage insurance allows a buyer to buy a $100,000. house for only $5,000. down. Or a $200k house for only $10k. Can you imagine lending someone $100,000 with only receiving a $5,000. deposit? Here is why your buyers should love mortgage insurance: Ø Conventional mortgage insurance is removable. After 2 years of timely payments borrowers can request removal. Ø Mortgage insurance is tax deductible. Ø Mortgage insurance reduces lender risk, therefore loan approval is easier. Ø Mortgage insurance premiums are lower than 2nd lien payments. Ø No additional upfront costs. Ø Minimal funds brought to closing. (borrower not cash poor at closing). Ø One less FHA loan. (HUD can kiss out ass!). Ready for this? It is estimated that FHA will need close to $1billion in taxpayer bailout. HUD has until Sept. 30th to decide if they have the money to continue to operate. Yes friends, HUD is run by the same folks who once bragged about saving DETROIT! On a sad note: Jude Patronella passed last week. His weekly articles about the personal lives of those in real estate will be missed. I will miss his sharp wit and humor. Last night on World News Tonight- A potential homebuyer was interviewed about how the rise in mortgage interest rates (from 3.5% to 4.5%) priced him out of the home buying market. Either I am getting too old or a village is missing their idiot. Today’s rates 30 year fixed 4.750%
Posted on: Mon, 22 Jul 2013 14:51:03 +0000
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