Entries by Charlie Christensen

PMI Payment Options

Private mortgage insurance can be paid on either an annual, monthly or single premium plan. Premiums are based on the amount and terms of the mortgage and will vary according to loan-to-value ratio, type of loan, and amount of coverage required by the mortgage company. Under an annual plan, an initial one year premium is […]

Private Mortgage Insurance

Private mortgage insurance is a type of insurance that helps protect the mortgage company against losses due to foreclosure. This protection is provided by private mortgage insurance companies and allows mortgage companies to accept lower down payments than would normally be allowed. Private mortgage insurance also enables mortgage companies to grant loans that would otherwise […]

Homeowners Insurance Information

When you insure your home, you should insure your home for the total amount it would cost to rebuild your home if it were destroyed. If you don’t have sufficient insurance, your insurance company may only pay a portion of the cost of replacing or repairing damaged items. There are three ways to insure the […]

Refunds Ready on FHA Loans

If you have ever paid off a home loan backed by FHA, you may have money owed to you. And the government wants to pay you back. About 1 in 10 FHA borrowers leave money in their escrow accounts when they pay off their loans. The average refund for each borrower is about $700. Former […]

FHA Mortgage Insurance Costs

FHA requires a mortgage insurance premium (MIP) for its home buying programs. An up front premium of 1.50% of the loan amount is paid at closing and can be financed into the mortgage amount. In addition, there is a monthly MIP amount included in the PITI. Condos do not require up front MIP – only […]

FHA Single Family Mortgage Insurance Program

FHA’s mortgage insurance programs help low and moderate income families become homeowners by lowering some of the costs of their mortgage loans. FHA mortgage insurance also encourages mortgage companies to make loans to otherwise creditworthy borrowers and projects that might not be able to meet conventional underwriting requirements, by protecting the mortgage company against loan […]

Qualifying for a Low Down Payment Loan

To be considered for a low down payment loan, you generally need to have: Sufficient income to support the monthly mortgage payment Enough cash to cover the down payment Sufficient cash to cover normal closing costs and related expenses (explained below) A good credit background that indicates your payment history or “willingness to pay” Sufficient […]

Down Payment Loans and Gifts

Loans and gifts can help with your down payment, but you can not use this strategy for all loan programs. The most popular program for this tactic is the Federal Housing Administration or FHA. FHA allows 100% gift funds for your down payment. The gift can be from any relative or can be collected through […]

Low Down Payments and Mortgage Insurance

Simply put, mortgage insurance protects the mortgage company against financial loss if a homeowner stops making mortgage payments. Mortgage companies usually require insurance on low down payment loans for protection in the event that the homeowner fails to make his or her payments. When a homeowner fails to make the mortgage payments, a default occurs […]

Credit Scoring and How It Works

Credit scoring is a statistical method that lenders use to quickly and objectively assess the credit risk of a loan applicant. The score is a number that rates the likelihood you will pay back a loan. Scores range from 350 (high risk) to 850 (low risk). There are a few types of credit scores; the most […]