Kennewick, Richland, Pasco, & West Richland Washington Virtual Open Houses in the Tri-Cities MLS MarketOne positive outcome fro... Read More
Finding the Right Mortgage Insurance for Your Home
Taking out a mortgage can be an expensive prospect. Over the course of your payment schedule, you will be tasked with paying back both the principal loan amount and the interest on top of that. Add to that the fact that you are designed to do so for 30 years, typically, and the cost adds up to a sum you’d probably not want to think about.
Many home buyers will then be prompted to take out private mortgage insurance on top of that amount, often feeling compelled to go with the mortgage insurance provider recommended by the lending agency. As you might expect, going with a bundled insurance provider has the potential to deliver a poor deal to the consumer because the bundled company can sometimes feel free to charge a higher price.
Know Your Rights
The simple fact is that you do not have to feel compelled to go with the recommended insurance provider and you are free to explore other options. In fact, in some cases, you can get around even taking out private mortgage insurance if you take the proper steps to not only protect yourself but give yourself as many options as possible. Your lender does not have the power to dictate what mortgage insurance provider you choose; only you have that power.
Private mortgage insurance is intended to protect the lending agency should something happen to you or your home that affects your ability to pay back the loan amount in full. In some cases, this insurance is not necessary and in some cases, it is a strict requirement to protect a lending agency’s interests.
Ditch the Insurance
In some cases, you can even get rid of private mortgage insurance all together, potentially saving you thousands of dollars over the course of your loan. However, this is not true in all cases and you should make sure that you fit a few requirements before pursuing it as a possibility.
For loans that take up more than 80 percent of a home’s sale price, you will not be able to remove private mortgage insurance at all. So, the goal then remains to achieve a level of loan amount that somehow gets under that 80 percent threshold so that you can avoid the cost of private mortgage insurance. While that is not possible on some homes, it is certainly possible for some and exploring the potential is well worth the effort.
Current Home Owners Have Outs
You do not have to be a potential home owner to reap the benefits of removing private mortgage insurance. Current home owners are free at any time to go through and modify their loan terms by simply refinancing and reaching the requirements for dropping private mortgage insurance.
As with many refinance situations, your best bet for profit is through pursuing potential lending agencies outside of your current one. Your current lending agency is already quite content with your current loan and even if you refinance with someone else, the loan amount will be paid off to them and with no further risk, they can bank the interest you have already paid.
Instead, an outside company will be more compelled to compete for your financing money and refinancing can not only net them the profit of taking on your loan but deliver you the potential for avoiding private mortgage insurance if you can somehow get under the 80 percent threshold. If you are successful, you might even be able to couple your saved money with a lower interest rate locked in on your loan, giving you a great refinance that could save you thousands down the road.
Call us, 509.438.9344, Email us, or fill out the contact form below.
We respond right away! -Colleen Lane, Realtor®
Latest From Our Blog...
Horse Property at 158904 W North River Road Prosser, WA 99350 Home For Sale | $385,000. | MLS #250300 Perfect Prosser horse prop... Read More
Listing Your Home to Sell | What We Will Do For You When Selling Your Home on the MLS When you list your Tri-Cities Washington o... Read More
2505 West 32nd Avenue, Kennewick 99337 Home For Sale | $324,900. | MLS®# 250031 Well maintained and upgraded 2072 ... Read More
6106 Panther Lane, Pasco, WA 99301 Home For Sale | $275,000. | MLS# 250418 West Pasco 4 bedroom, 2 bath, 1,481 sq ft home built ... Read More
Helping Home Buyers | What We Do For You Local Tri-Cities Washington Husband/Wife real estate team offering all sorts of advanta... Read More
Are you looking for something to do this weekend in the Tri-Cities Washington or in the surrounding area? Then check this out! We h... Read More
105 South 716 PR SE, Kennewick, WA 99338 Southwest Kennewick Home For Sale | $515,000. | MLS# 250251 Situated on over a half-acr... Read More
266 Greenview Drive Richland WA 99352 Home For Sale | $545,000. | MLS# 247909Beautifully elegant well-maintained large 4633 square ... Read More
5112 Lucena Drive Pasco WA 99301 Home For Sale SOLD FOR FULL ASKING PRICE | MLS® #249967 | $369,000. Comfortable W... Read More