Selig and Associates, Inc. We help people with Tax Problems get the mortgages they need. At Selig and Associates, all mortgages and IRS installment agreements are prepared and negotiated by Federal Tax Practitioner and MLO David Selig NMLS #1242271 and Attorney and Real Estate Broker Bradley Dorin, Esq. If you’re interested in buying a new house or refinancing your existing mortgage, call Selig and Associates and schedule a FREE consultation today.
Tip of the Day:
Understanding Mortgage Insurance, commonly known as “MIP” In a nutshell, the FHA requires borrowers to pay MIP when their down payment less than 20% of the purchase price.
FYI, with an FHA mortgage, your down payment can be as low as 3.5%. That means if your house costs $400,000 your down payment is only $14,000 (compared to the $80,000 down payment most banks require).
The MIP premium pays for an insurance policy that protects the lender in case the home is foreclosed and the lender cannot recoup the full loan balance. With a lower down payment, there is less equity in the property and a greater need for MIP.
Additionally, FHA borrowers can stop paying MIP when their loan balance drops to 78% of the home's appraised value at the time of purchase. Moreover, when a homeowner gains equity through value appreciation, he or she can apply to have the MIP removed if her equity is over 20% based on a current appraisal and they have a good payment history.
Originally Posted: http://nearsay.com/c/127162/123636/we-can-get-you-a-great-deal-on-a-fixed-rate-mortgage-even-if-you-have-a-tax-problem
The MIP premium pays for an insurance policy that protects the lender in case the home is foreclosed and the lender cannot recoup the full loan balance. With a lower down payment, there is less equity in the property and a greater need for MIP.
Additionally, FHA borrowers can stop paying MIP when their loan balance drops to 78% of the home's appraised value at the time of purchase. Moreover, when a homeowner gains equity through value appreciation, he or she can apply to have the MIP removed if her equity is over 20% based on a current appraisal and they have a good payment history.
Originally Posted: http://nearsay.com/c/127162/123636/we-can-get-you-a-great-deal-on-a-fixed-rate-mortgage-even-if-you-have-a-tax-problem
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