CALL INFO LINE: 801-859-6555
 Welcome to the FreeUtahHomeSearch.com Blog

2014-12-04 15:42:32
Private Mortgage Insurance More Viable for Many Bo

Private Mortgage Insurance More Viable for Many Borrowers Than Costlier FHA Loans

 

o 8 years ago changed the lending landscape at many levels, including the public vs. private markets for mortgage insurance (PMI), which is a requirement for homebuyers putting down less than 20 percent.

The Federal Housing Administration has been raising premiums. And the agency last year started requiring borrowers to buy mortgage insurance for the life of the loan — a big added expense for homeowners.

The gains in home prices have made these low down-payment loans less risky for the big banks, which can offer a better deal than the FHA.

Private lenders are also requiring borrowers to buy private mortgage insurance on less-than 20 percent down payments. However, they often only require PMI until borrowers can build up 20 percent equity in their homes.

A new report from WalletHub.com has found that private mortgage insurance has once again become a more viable and affordable option for many consumers, compared to FHA loans.

FHA mortgage insurance premiums have nearly doubled since 2008.

“One now has to pay $17,398 in premiums during the first five years after the purchase of a median-price home ($212,100), compared to just $9,210 in 2008,” WalletHub states.

Many consumers with down payments below 20 percent can save $2,251 to $12,026 in just five years by choosing private mortgage insurance, the WalletHub report finds.

Of course, the higher your credit score and the more money you are able to put down, the more potential savings from PMI.

Unlike private mortgage insurance, FHA premiums continue to be assessed throughout the life of a loan, even if your loan to value (LTV) ratio drops below 80 percent. See WalletHub’s chart below. Read the full report here.

PMI


Read more at http://ecreditdaily.com/2014/12/private-mortgage-insurance-more-viable-for-many-borrowers-than-costlier-fha-loans/#KgFhP4fhaxFzpkxj.99

 
Blog Archive
2017-04-16 09:49:56
Population Growth Shifting Out of SL To UT County

2017-04-16 09:49:01
State’s economy fueling population growth

2017-03-10 16:03:59
CNBC ranks Utah No. 1 state for business

2017-03-08 10:24:12
Toughest & Easiest States for 1st Time Home Buyers

2017-01-04 10:39:50
Housing Market 2017: The Positives & Negatives

2016-06-14 10:31:17
Salt Lake Monthly Housing Report

2016-05-20 15:42:35
Who Pays the Highest Property Taxes?

2016-03-31 15:49:40
Cities to Watch: 2016's Fastest-Growing Places

2016-03-29 13:19:08
Salt Lake Quarterly Housing Report

2016-01-28 08:37:27
Park City 2015 Year-end Statistics Press Release

2016-01-18 10:50:31
5 Things to Never Say When Selling a Home

2016-01-11 11:46:49
The ‘Missing Link’ in Housing

2015-12-23 12:08:43
5 Real Estate Trends That Will Dominate 2016

2015-12-15 10:56:50
How Will Higher Rates Affect Housing?

2015-12-04 10:39:02
Big Expectations for Housing in 2016

2015-12-01 10:07:30
6 ‘Tacky’ Home Décor Trends

2015-11-10 11:31:23
Home Buyers Don’t Need to Fear

2015-10-28 09:48:58
Home Prices Rising at Faster Pace Than Inflation

2015-10-20 15:23:54
Scammers Using New Chip-Based CCs as Fresh Phishin

2015-10-09 10:13:25
3 Home Inspection Deal-Breakers

2015-10-06 14:42:40
The Next Three Months: Best Time to Buy

2015-09-17 10:30:01
How High Will Mortgage Rates Actually Climb?

2015-09-11 14:14:05
Best Day of the Year to Buy a Home

2015-08-24 08:28:04
Home Resales at 8-Year High as Buyers Act Before M

2015-07-31 11:21:43
Utah Economy Newsletter June 2015 Now Available

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.