It is important to understand a mortgage insurance premium before you start your home loan search. Some lenders require mortgage insurance, especially on FHA loans, in the event you default on your loan. The lender uses the insurance to protect their assets and the amount of money you financed. The loan type determines whether or not you pay for mortgage insurance. If you do have to pay a mortgage insurance premium, make sure you are fully aware of the cost proposed by the lender and how much it increases your monthly payment.
How a Mortgage Insurance Premium Affects your Loan
Your monthly mortgage insurance premium generally affects your mortgage payment. The cost of the premium is rolled into your payment, which causes the payment to show higher than the payment you would make on principal and interest alone. This occurs when the lender provides the mortgage insurance for you at the loan closing. However, you are not required to use the lender provided insurance. You can search for your own private mortgage insurance policy that offers a far lower premium. You can find a lower premium by using a reputable broker who specializes in mortgage insurance rates.
Finding Quality Mortgage Insurance with Centex Capital
We at Centex Capital are an industry leader in helping people find quality mortgage insurance. We help you understand how mortgage insurance works and how it defines your overall loan. We help you find a premium that fits your budget. We do not want you making a monthly payment you cannot afford. Our reputation is impeccable, and the service rates high among industry expert.
Contact us for more information. Call us at (800)842-2910.