The Return of Mortgage Insurance

Because of relatively low interest rates, today’s home buyers are financing a greater percentage of the purchase price than ever before. When buyers finance more than 80% of the purchase price, they must either pay mortgage insurance or get a second mortgage for the amount above 80%. As interest rates continue to rise, mortgage insurance has become a more attractive option than getting a 2nd mortgage. This is especially true with a new program called Single Premium Insurance, where the buyer can factor the insurance premium into the loan amount, making the total payment less than if the buyer would have gotten two mortgages. Be sure your buyers look into this new options when financing their home purchase