Mathis Title Company, a Fairfax, VA Title Company, has recently released a blog detailing how to calculate lender mortgage insurance.
Online PR News – 07-October-2022 – Fairfax,VA – Mathis Title Company, Fairfax, VA Title Company, recently created a blog detailing how to calculate lender mortgage insurance, otherwise known as private mortgage insurance (PMI). When buying a home, there are a variety of fees that must be paid to multiple parties. Calculating how much these additional costs will impact your repayment each month is important to your investment.
Under unique circumstances, lender mortgage insurance is bought by the buyer on behalf of their lender when they take a mortgage. Agreements over the necessity of this insurance are customarily made when a purchaser is paying less than 20% of the home's total value upfront or the lender believes they taking a risk. For example, if the buyer is providing a $10,000 down payment on a home worth $250,000, the lender may require the buyer to purchase a PMI. With a $50,000 down payment and acceptable financial history, a PMI would not be necessary. If the buyer were to default on their home loan, the lender is then forced into foreclosure of the home and loses a substantial portion of their investment. However, when a buyer has a PMI the lender can recover the value of their investment.
If you do find yourself needing to take on a PMI, factoring the expense into your monthly payments can help you better plan your financial future. In most cases, a PMI is not a longtime requirement for buyers. Most terms of a PMI will require the home to reach 78-80% of its loan balance before the buyer can negotiate to have the insurance removed. This process will likely require an appraisal to assess the current and future value of the home against the value of the loan. Planning and factoring in for the removal of the PMI can greatly reduce the total investment needed to fully own the home.
Speak to Mathis Title Company to learn more about the variables of lender mortgage insurance and how to calculate its fees into your monthly payments. An experienced title agent like Robin Mathis, who has extensive experience in both the legal and real estate industries, can help give future homeowners the confidence they need in understanding the nuances and intricacies of their investment. Contact Mathis Title Company online at https://www.mathistitle.com/or by phone at 703-214-4020. The company is headquartered at 11325 Random Hills Road, Suite 160, Fairfax, VA 22030.