Most people assume that you always have to pay monthly mortgage insurance if you finance more than 80% of your house’s value (or have less than 20% equity). That is not the case anymore. There are some programs out there now with no mortgage insurance with good rates or there are program with a slightly higher rate, but with no mortgage insurance monthly payments. The overall net effect is a lower overall payment, even though the rate is slightly higher. The average mortgage rate for 30 year fixed as of March 8th has fallen in the 4.75% to 5% range (depending on several factors like closing costs, credit score, loan amount, etc), but with NO Mortgage Insurance, you can still get a rate in the 5% to 5.25% range with most Fannie Mae loans, which can save you on your mortgage payments. There are even mortgage programs now for Jumbo loans up to 90% LTV (10% or more equity) that have low rates with NO Mortgage Insurance. The best thing to do is call your mortgage broker and discuss your options.
-If you want to do a mortgage, call or email me today.
-Gary Schoenholz – Loan Officer Manager- Horizon Financial, Inc. www.GaryTheMortgageExpert.com. Phone- 864-979-1111
