Is it possible that when buying a Franklin home
, paying Mortgage Insurance can save you money? Well CMG FInancial can explain all of the ins and outs of a home mortgage to you and the benefits so we thought we would let them share a blog post on our blog detailing the purpose of the Mortgage Insurance. The Grumbles Team discusses these kind of issues up front with the buyer/borrower and the lender to make sure that we submit the best offer for that particular situation. If we can get closing cost concessions from the seller, then maybe the single MI payment up front at closing gets the buyer a lower down payment and the MI is paid from the seller. This could allow the buyer to save money for capital improvements that they want to make and retain a lower monthly payment free of Mortgage Insurance payments. Review this CMG blog and call Carey Ann with questions.
Mortgage insurance provides lenders a form of financial guarantee which covers the lender in cases in which the borrower defaults on a loan. For those looking to buy a home in Franklin TN
, agreeing to loan terms which include mortgage insurance, increases the purchasing power of the buyer a great deal.
Agreeing to buy mortgage insurance allows individuals the opportunity to buy a home with a down payment of only 5%-10%, as opposed to the 20% that is often required when the lender does not have the guarantee of mortgage insurance.
Buyers typically purchase and pay for mortgage insurance in three different ways. These ways include paying in annuals, monthly premiums, or singles. We are going to take a closer look at the available mortgage insurance payment options below:
1.) Annuals: The annuals payment option allows the lender to collect the first year's premium at closing and then all subsequent payments are made on a monthly basis.
2.) Monthly Premiums: This payment option requires the buyer to only pay for one month at closing and all remaining payments are then made on a monthly basis.
3.) Singles: The singles payment option requires the buyer to make a one-time single payment that is typically financed as part of the mortgage amount.
Mortgage insurance ensures the lender is covered in cases in which the borrower can no longer pay the loan and defaults on it. It is also a powerful bargaining tool for potential borrowers who are unable to come up with a large down payment. Offering to pay mortgage insurance can decrease the amount of down payment by 10% to 15%.
But it is important to note that mortgage insurance my not have to be paid forever. After a certain period of time and when certain conditions are met, mortgage insurance is no longer required to be carried on certain mortgage loans.
Carey Ann Cyr
Carey Ann Cyr
is the Area Manager and Mortgage Consultant for CMG Financial in Franklin, Tennessee
. She works with individuals and families who are looking for the best mortgage in Franklin, Tennessee. She can be reached at 615-456-4556