What is next? A drastic increase in Mortgage Insurance Rate?

I always get in trouble with a fellow agent, because I am always looking for the next problem with a transaction. 
   
I am trying to stay ahead of the situation, but told 'We will handle it then, why worry now'.
Well, I am worried now.  What do you insurance folks seeing coming with mortgage insurance.
PRICE - we see them falling, and some saying they will continue to here in Montgomery County Md.
INTEREST - well, they appear to be rising.again.
TAXES - well, they are and will continue to, especially with the loss of transfer taxes and recordation fees.
  - Here in Montgomery County Maryland the recordation fee just changed 3/1/08. Was $6.90/thousand, with a waiver on the first 50,000 if a primary residence. Now $6.90/thousand for the first $500,000 and $10/thousand for any amount greater than $500,000; with the same waiver if a primary residence.
INSURANCE - well, what to you coming in the field of mortagate insurance?
 
Posted by Bob Force (REALTOR®) Silver Spring Md. on 03/02/2008 10:10 PM   Comments (6)    
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6 Comments on What is next? A drastic increase in Mortgage Insurance Rate?

Take a look at Matt Heaton's blog posts about the Monoline Insurers...  I guessing that we will see an increase in premiums, and possibly even the inability for some to get PMI/MIP. 

03/02/2008 10:56 PM by Lane Bailey - The REALTOR for Car People (Century 21 Network Realty)

Lane:

That is what I am afraid of - the inability of some to get PMI/MIP. 

Thanks for stopping by and leave a comment, now we just need to get someone to BUY, 

 

03/02/2008 11:21 PM by Bob Force (REALTOR®) Silver Spring Md. (Weichert Realtors®)

Bob, it only makes sense that the price of PMI will go up.  These guys have to be taking some pretty big hits outthere.

03/03/2008 06:59 AM by Patricia Kennedy (Evers & Company)

Bob, Mortgage insurance is going up. Drastically. But it is still cheap if your buyer NEEDS a loan for more than 80% LTV. What else are they going to do?

Bill Roberts

03/03/2008 09:40 AM by Bill Roberts - "Baby Boomer" Retirement Planning (Brooks and Dunphy Real Estate)

Patricia - I knowir will be going up, the question is how much and how fast.  I guess I am not sure just when the rate is established/locked in.  At the same time as the loan commitment?
Bill - What in your opinion is 'Drastically'.

03/03/2008 07:19 PM by Bob Force (REALTOR®) Silver Spring Md. (Weichert Realtors®)

Bob, it seems evident that if defaults are expected to rise, mortgage insurance rates are going to go up as well.

03/14/2008 01:47 PM by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Mastros Real Estate, Inc.)

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Real Estate Agent: Bob Force (REALTOR®) Silver Spring Md. (Weichert Realtors®)
Bob Force (REALTOR®) Silver Spring Md.
Leisure World, MD
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