![]() With FHA mortgage insurance, there is both an upfront cost and a monthly cost included in your monthly mortgage payment. ![]() There may, however, be variances depending on your down payment amount. This mortgage insurance is required on all FHA loans, and it costs the same no matter your credit score. Your PMI amount varies based off down payment amount and credit score.įor an FHA loan, your mortgage insurance premiums are paid to the Federal Housing Administration. If you obtain a conventional loan, Private Mortgage Insurance (PMI) is arranged by the lender with a private company. If you, the borrower, fall behind on your mortgage payments, pass away, or are otherwise unable to pay your mortgage obligation, the mortgage insurance acts as an insurance policy protection to the mortgage lender. Mortgage insurance, no matter the kind or amount, is in place to protect the lender. A borrower that is required to pay this insurance will see it included on their total monthly mortgage payment, costs at closing, or both. ![]() Mortgage insurance is in place because it lowers the risk to the lender. Typically, if a borrower’s down payment is less than 20 percent of the purchase price of the home, they will need to pay mortgage insurance. ![]() Let’s dive into mortgage insurance, what it is, and how to get rid of it. Saving Money on Your Current Mortgageīut what if you’re not looking to buy or sell? What if you are looking into ways to restructure your current mortgage to perhaps save some money? A great option to lower that monthly mortgage payment is to eliminate mortgage insurance if you incur that payment every month. After months of supply not balancing with the demand, we could see these two align in the near, near future. The increasing amount of homes on the market gives buyers more choice and perhaps a reduced level of competition and bidding wars. According to Aldo Svaldi with The Denver Post, the 2,137 single-family homes available for sale at the end of June is nearly 60% higher than May’s depressed count, and the active inventory of condos and townhomes rose 33.3% month-over-month to 985. Combined, the Denver area experienced a 50.5% gain in its active inventory, a new record for a monthly increase and six-fold higher than the 5.9% gain averaged between May and June. Looking into June 2021, we see data that points to a heftier inventory supply which could be a sign that the market is cooling off a bit. Signs that the Market is Cooling off in 2021 But as history has shown us, a seller’s market never remains a seller’s market indefinitely just as a buyer’s market never stays a buyer’s market long-term. Employers, major and smaller, have extended work-from-home policies indefinitely making it easier than ever for employees to literally live anywhere. Add that with the ability to work remotely now more than ever before and we now have a real estate frenzy. Working Remotely is Helping Fuel the DemandĬolorado has long been a state that people flock to for all that it has to offer. Inventory was down and the number of sold listings was up in this hot real estate market. The percent of list price that sellers received is up 4.8% from YTD 2020 and the average days on market is down to a 26 day average compared to 35 days YTD 2020. We can clearly see key data here: median sales prices were on the rise for both single family homes and condos with single family median sales prices jumping up 25.3% from May 2020 to May 2021 and condo median sales prices jumping up 21.8% from May 2020 to May 2021. For a great visual of what has been happening in Colorado, check out this collection of data from : The Colorado real estate market, and real estate market nationwide, is strong. Beacon Lending Would Love To Help You Understand How Eliminating Mortgage Insurance Can Help You Save Money Every Month Colorado’s Real Estate Market – Summer 2021
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