No mortgage insurance for you!

No MI with just 10% down on your next mortgage is available now for well-qualified homebuyers.  The Richard Woodward Team is here to make mortgages easier – and less expensive.  Get the best program custom-designed for your needs, low rates and cost.

What Is Mortgage Insurance And How Does It Work?

Mortgage insurance or MI, reduces the risk for a lender to take out a loan, so you can apply for a loan that you would not otherwise be able to get. Typically, borrowers who make a down payment of less than 20% of the purchase price of the home will have to pay for mortgage insurance. Mortgage insurance is usually also required for FHA and USDA loans. Mortgage insurance reduces the risk for a lender so you can put down as little as 3%.  Check out our first-time home programs here.

But this increases the cost of your loan. If you owe your mortgage insurance, it will be included in the total monthly payment you make to your lender, in closing costs, or both.

Mortgage insurance, regardless of type, protects the lender, not you, in the event of a delay in payment. If you fall behind, your credit rating could suffer and you could lose your home to foreclosures. There are several types of loans available for borrowers with low down payments and we offer them all.  You can view them from our Loan Program menu.

If you get a regular loan, your lender can take out mortgage insurance from a private company. Private mortgage insurance (PMI or MI) rates vary based on down payment and credit rating, but are generally lower than FHA rates for borrowers with good credit history. For the most part, private mortgage insurance is paid on a monthly basis, with little to no down payment required at closing. Under certain circumstances, you can cancel your PMI.