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lender: Private Mortgage Insurance vs. Homeowner's Insurance: What's the Difference?
- 09/30/08 01:50 AM
Private mortgage insurance (PMI) protects the mortgage lender if a homeowner defaults. PMI allows the lender recover some of its costs and losses after foreclosing and selling a repossessed home. PMI rates vary by loan type, loan size, and loan characteristics. The higher the risk to the bank, the higher the cost of PMI. Following are two types of PMI: Borrower-paid mortgage insurance Lender-paid mortgage insurance Borrower-paid mortgage insurance is the more common version of PMI. It may be payable up front, payable monthly, or both. However, once the mortgage balance is reduced to 80% of the home's value, PMI may no longer be required
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lender: Glad to Help a Realtor and Buyer in Distress
- 09/19/08 03:37 AM
A few weeks ago, I came across an Active Rain post from a very nice Realtor named Debra Brooks from Huntsville, TX who was very upset with the lender on a purchase transaction. Yes, it was another one of those infamous 11th hour loans blowing up again as I mentioned in one of my previous posts titled "5 Reasons Why Loans go Awry at the 11th Hour." What had happened to the deal? Well, the buyer, who was currently living in Houston, was purchasing a manufactured home on a 20 acre property in Huntsville about 90 miles north of Houston. It
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