Mortgage Date Looming for PMI

By
Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

Mortgage Date Looming for PMI to stay attached for the life of your home loan!

Many home buyers are unaware of the importance of having their mortgage loan locked with a purchase agreement before the End of March!

Little shifts in mortgage lending rules have been happening and PMI or better known as Mortgage Insurance is just another change.

Mortgage Insurance used to drop off after reaching the magic number of 30% equity.  The 10 year mortgage ruleMortgage Date Looming For PMI of having your loan approximately 10 years was another magic date for PMI.

This is changing, you will pay your mortgage insurance for the life of your loan after March 30th.

Don't Look Now but Fannie and Freddie are going to make these changes too.

Credit scores are another story.  Some of the subsidized loans will be long gone because government funding will be used up.  So your credit score will have a bigger impact than ever before on your loan rate.

Get to your favorite lender for all the details and programs that are currently available.  If you put 20% down this shouldn't be a problem.

Michigan has some specialized mortgage programs.  Make sure you ask!

If you need a reputable lender give me a call I share a couple names in the Grand Rapids Michigan area.  

The mortgage date looming for PMI you will need someone would understands and quickly helps you get a purchase agreement in place and a lender to process your home loan.

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mortgage date looming for pmi
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Rainmaker
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Thank you for this reminder. The permanent PMI could knock some buyers out of the home buying market when they realize the amortized cost of their loan. Furthermore, it will force many to save until they can provide the adequate down payment to avoid the PMI Cancer out of the starting gate. This is not an entirely bad thing, but lots of folks just can't scrap-up the minimum PMI killing  down payment for any number of reasons and still need a roof over their heads.

Feb 23, 2013 06:27 AM #1
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Norman, thanks for the comments, I thought it might be timely.  The key is getting an accepted offer with a lock date!  I think you are right on target, many people won't be able to avoid PMI.  Thanks again for your comments Norman.

Feb 23, 2013 06:42 AM #2
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Rainmaker
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Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Real Estate Services You can Trust!
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