There are a few important mortgage terms you should be familiar with. Today I’d like to highlight one phrase in particular: Mortgage insurance.
Mortgage insurance refers to coverage that protects the bank when buyers use a loan to purchase a property. This coverage ensures that the bank will be paid in the event of a foreclosure.
The cost of mortgage insurance will range from 0.03% to 1.15%, and it will be added into the price of your loan.
On FHA loans, mortgage insurance will be paid up front and also throughout the entire life of the loan. For conventional loans, mortgage insurance will be waived after the buyer meets a 20% equity threshold.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.