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Mortgage Insurance |
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WHAT IS THE REQUIREMENTS ON MORTGAGE INSURANCE. IS IT BY PERCENTAGE, $$AMOUNT DOWN PAYMENT, AMOUNT OF EQUITY, BALANCE OF LOAN, ETC.? THANK YOU. K.M.F. |
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Most conventional mortgage have a mortgage insurance requirement based on all three things you mention in your question. The borrower must carry the insurance unless the amount of the down payment comes to at least 20 percent of the purchase price. No insurance is needed if the borrower will have at least 20 percent equity, so that the balance of the loan is no more than 80 percent of value.
FHA loans have a different system of mortgage insurance, and VA loans carry a government guarantee instead. |
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Edith
Originally published on September 16, 2007 |
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