Private mortgage insurance (PMI) helped a record-high two million low-downpayment borrowers secure mortgage financing in 2020, a 53% jump from 2019, Housing Wire reports. It’s generally required if you’re unable to make a minimum down payment of 20% and ranges between 0.5%-2% of the loan total. Fortunately, however, you’re not locked into paying PMI (which can be hundreds of dollars each month) for the entire life of your loan and have several options for getting rid of it. Wait for automatic cancellation Under the Homeowners Protection Act, PMI should automatically…
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You Do Not Need Life or Income Protection Insurance to Get a Mortgage
There are many rumors that surround getting different types of insurance. One of the most prevalent ones is that you need life insurance or income protection cover to get a mortgage. Research shows that 30% of borrowers are told that life insurance is a legal requirement for applying for a mortgage while a further 50% of people who apply for a mortgage are told that they also need life insurance. Life Insurance and Income Protection Are Both Sensible Options Life insurance pays out a lump sum to your beneficiaries once…
Read MoreSketchy force-placed insurance cause HSBC to have to pay homeowners back
Property owners in Massachusetts who were sold this coverage through dubious practices will receive $2.7 million. HSBC, a national mortgage lender and servicer, has now agreed to pay a total of $4 million as a result of its force-placed insurance practices, according to Massachusetts Attorney General Maura Healey. This payment was the outcome of a settlement in a case in which HSBC was accused of inappropriate practices. These practices related directly to its sale and management of force-placed insurance. It involved allegations that HSBC had been receiving various forms of…
Read MoreNew mortgage insurance unit spin-off is added to AIG’s current goals
American International Group has made the decision to look into a spin-off of that branch of its business. American International Group (AIG) is now in the midst of the pursuit of a spin-off of its existing mortgage insurance business, according to several reports based on sources who are familiar with the matter. This new strategy from the insurance company could come at precisely the time that goes up against Carl Icahn. Despite the attempts that the company is seeking to make to spin-off its mortgage insurance business – which made…
Read MoreLayoff insurance is thriving in the current economic situation in Alberta
Residents of the Canadian province are paying about $50 per month, per person, just in case. A new form of standalone layoff insurance is increasing in popularity in Alberta, Canada, and this is being seen as a fresh indicator that an economic downturn has made its way into the province. Thousands of layoffs have already occurred in the province, particularly within the energy industry. In response, an insurer is hoping to be able to profit and help people at the same time, providing them with both peace of mind and…
Read MoreFHA set to reduce mortgage insurance premiums
Federal agency has plans to significantly reduce mortgage insurance premiums in the near future The U.S. Federal Housing Administration (FHA) has announced plans to cut mortgage insurance costs. The move is part of a larger endeavor that involves making it easier for families to purchase homes throughout the country. The FHA has a program that offers those with modest incomes the chance to purchase homes. This program is designed to support those that do not have enough money to make a significant down payment on a property. Insurance coverage for…
Read MoreFHA mortgage insurance rates to be slashed in 2 weeks
As of January 26, premiums on a loan from the Federal Housing Administration could be cheaper. The Federal Housing Administration has now released the details of its intentions to lower the premiums on mortgage insurance, in an announcement that followed closely on the heels of the unveiling of President Barack Obama’s intentions to give the first time home purchasing market a boost. There will be considerable reductions in the insurance rates that will be charged on FHA-insured loans. For instance, when it comes to 30 year mortgages that have been…
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