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Those that would not be capable of buying a home can when mortgage insurance is implemented. But those buyers are more risk for a Lender, so the mortgage insurance provides them protection, should the Borrower default. Buying/financing with mortgage insurance involved can be a "win win" for both Borrower and Lender ... and housing markets too ..
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Scott Thompson
Blue Springs, MO
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Roy Kelley
Gaithersburg, MD
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Sandy Padula & Norm Pa...
, CA
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Nina Hollander, Broker
Charlotte, NC
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Tony and Suzanne Marri...
Scottsdale, AZ
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Doug Dawes
Georgetown, MA
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Debe Maxwell, CRS
Charlotte, NC
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Brian Burkhalter
Draper, UT
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Dorie Dillard Austin TX
Austin, TX
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
2,631,692
In theory, it allows the borrower to make a lower downpayment. The insurance protects the mortgagee in case of default.
In reality, mortgage insurance lines the pockets of the investors behind FNMA and FHLMC.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Georgetown, MA
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Inna Ivchenko
Encino, CA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,709,415
It helps to get the loan.
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,408,683
Ask Jason E. Gordon As far as I see it, it's just another expense as a buyer. But, a necessary evil to get the loan approved.
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Jason E. Gordon
San Diego, CA
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Doug Dawes
Georgetown, MA
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Mary Yonkers
Erie, PA
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Lyn Sims
Schaumburg, IL
1,157,585
It depends upon the terms and conditions of the insurance contract.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
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Joseph Domino 480-390-...
Scottsdale, AZ
3,987,776
Mortgage insurance protects the investor/lender on high ration loans. It does have a benefit for the borrower in allowing less downpayment and higher loan to value ratios than are more commonly required.
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Gene Mundt, IL/WI Mort...
New Lenox, IL
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Georgetown, MA
2,212,917
Great question for a licensed mortgage broker...
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Georgetown, MA
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Anthony Acosta - ALLAT...
Atlanta, GA
1,231,686
See Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi answer. He is mortgage expert.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
4,531,693
If there is some claim to the property it will insure the lender and the borrower.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,204,474
Do not give a hoot. Your question was be valid if the mortgage industry was regulated. It sounds like your teaching material for studing exam is way dated.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,029,924
A deduction for a buyer, and the only thing allowing them to purchase with less than 20% down (even all those "10% down with no PMI" lenders are incorporating PMI into their rate), so it's a huge benefit to buyers without a large down payment.
To a lender, it's a security blanket, as they don't get fleeced in the instance of default.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,793,670
lender only - they are planning on foreclosure on you at the closing.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,985,142
It depends on the type of mortgage: Mortgage insurance is a security benefit for the lender and a requirement for the buyers to pay in order to secure the loan... depending on the down payment percentage.
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Doug Dawes
Georgetown, MA
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Mary Yonkers
Erie, PA
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Lyn Sims
Schaumburg, IL
5,964,593
Covers a lot of risk for the lender.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,466,057
Brian Burkhalter It allows buyers to put down less than 20% and protects lenders should the buyer default.
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
5,770,641
Brian,
Corinne Guest, Managing Broker answered the question. A
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Doug Dawes
Georgetown, MA
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Bob Crane
Stevens Point, WI
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Mary Yonkers
Erie, PA
1,583,021
Mostly it protects a lender in case the borrow defaults on the loan.
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Georgetown, MA
4,758,939
Listen to Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - He knows what he's talking about!
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Gene Mundt, IL/WI Mort...
New Lenox, IL
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Doug Dawes
Georgetown, MA
1,690,454
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi answered your question
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Gene Mundt, IL/WI Mort...
New Lenox, IL
4,730,469
3,071,039
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi nailed this one!
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Gene Mundt, IL/WI Mort...
New Lenox, IL
4,318,402
Brian Burkhalter - well, lenders now trust the borrower with higher mortgage amount than otherwise they could qualify for.
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Doug Dawes
Georgetown, MA
3,986,056
3,408,104
Benefits the lender if you default. Benefits the buyer if there is an issue with the deed.
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Doug Dawes
Georgetown, MA
4,604,024
Thank you Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi !!
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Doug Dawes
Georgetown, MA
1,045,265
Borrower benefits because if it weren't available they likely couldn't purchase the home until they had 20% down payment mortgage insurance makes it possible to put down much, much less money when buying a house. The lender benfits from the security of the loan above 80% of the LTV in the event of the home buyer defaulting. need home buying or selling info in Northern Virginia? #ComeHomeVA
61,716
It was intended to restore the lender in the event of a default as original GSE guidelines only went to 80%.
The better question at this point might be, What is Fannie Mae?
You would think insurance covering the borrower would be a requirement. Gap insurance that pays your mortgage in event you are unable to.
I only know of one company that advertises this but they talk out of both sides of their mouths so hard I am not sure I recommend them.
Make it a Great Day.
809,103
It benefits the lender. But I suppose it benefits the borrow because they need it to get the mortgage. -kasey
7,306,736
1,456,742
4,549,994
55,453
If you are talikg PMI / MIP it has no benefit to the borrower. This normally includes a Funding fee and in some cases (FHA) a monthly payment. It only protects the lender in deal with less then 20 % down.
3,210,238
That would be a great question to ask your real estate instructor who could implement all of these great responses into their teaching ... and actually teach their students versus sending them here.
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