mortgage insurance in Clovis, NM

What are the different types of mortgage insurance Clovis?

Mortgage insurance in Clovis, NM typically comes in two forms: private mortgage insurance (PMI) and mortgage insurance premiums (MIP). PMI is most common, and is used to offset the lender's risk when the borrower is unable to contribute a full 20% down payment. MIP, on the other hand, is required by the government for borrowers with FHA-backed mortgages, and insures the loan against potential default. Both types are paid in monthly installments, and the rates vary based on the loan and the amount of the down payment.

How does a larger down payment affect my Clovis mortgage insurance policy cost?

Making a larger down payment on your mortgage in Clovis, NM can reduce the amount of your mortgage insurance cost. A larger initial investment will reduce the number of monthly payments needed to pay off your loan, as well as reduce the overall cost of the loan itself. Even a small increase in the down payment can have a significant result. Mortgage insurance is based on the loan-to-value ratio, so if your down payment is higher, the ratio may be reduced and your mortgage insurance cost will be lower.

Who is eligible for a private mortgage insurance policy Clovis?

In Clovis, NM, the eligibility requirements for private mortgage insurance can vary based on the lender and product. Generally speaking, borrowers with a down payment of less than 20% are required to carry private mortgage insurance. Typically, borrowers with a conventional loan must have a credit score of at least 620 to get approved for the loan and for PMI. FHA loans often require a minimum credit score of 580 to secure PMI; however, certain lenders may require a higher credit score to qualify.

Who is eligible for FHA mortgage insurance near Clovis?

In Clovis, NM, the eligibility for FHA mortgage insurance is primarily determined by whether the prospective homebuyer meets the loan requirements established by the Department of Housing and Urban Development (HUD). Generally, this includes a good credit score, secure income, and certain debt-to-income ratios. The type of property that is purchased is also a factor; for example, condos, manufactured homes, and multi-unit dwellings do have different requirements. In addition, FHA allows borrowers to secure mortgage insurance even if they have had past bankruptcies and/or foreclosures.

Do Clovis mortgage insurance companies offer USDA insurance?

USDA mortgage insurance is a government-backed loan program designed to help homebuyers in rural and suburban areas, like Clovis, NM. USDA mortgage loans provide low-interest rates, lower mortgage insurance premiums, and no limits on the seller concessions allowed. It is available to people of moderate means, providing more flexibility than conventional loans. Additionally, with USDA mortgage insurance, borrowers can receive 100% financing, meaning they do not have to bring money to the closing table. This can be hugely beneficial for those trying to purchase a home in Clovis.

How is the VA funding fee calculated in mortgage insurance policies near Clovis?

The VA Funding Fee in Clovis, NM is calculated based on the size of a down payment, loan type, service category, and whether it is the first or subsequent use of a VA loan. Generally speaking, the fees range from 0.5% to 3.3% of the loan amount. This fee can be waived if the borrower is a disabled veteran or using a VA-eligible home loan to purchase a home in Clovis. In addition, if the loan is approved as part of a Native American Direct Loan program, the funding fee is automatically waived.

Are there discounts available for mortgage insurance in Clovis?

Yes, discounts are available for mortgage insurance in Clovis, NM. Our experienced agents can help you review your current homeowners insurance to see if you qualify for a discount. A number of factors can influence the amount of the discount, such as the type of mortgage, the loan term, a good payment history, and the amount of coverage purchased. In addition, certain lenders may also offer discounts for setting up automatic payments or loan packages that contain multiple services like homeowners insurance and mortgage insurance.

What are the requirements to cancel my Clovis mortgage insurance policy?

Residents of Clovis, NM who wish to cancel their mortgage insurance must meet certain specific requirements. First, Clovis homeowners must have a sufficient level of equity in their home to the point where the loan-to-value ratio is lower than 80%. Second, the home must have a current market appraisal showing the value is at least 25% higher than the amount borrowed and that the homeowner is current on mortgage payments. Lastly, the mortgage insurance must have been in place for at least 2 years. If all these conditions are met, contact your mortgage lender to start the cancellation process.

How do I calculate mortgage insurance for a Clovis mortgage insurance company?

Calculating mortgage insurance for properties located in Clovis, New Mexico, can be done by calculating the mortgage amount and then multiplying the loan amount by the mortgage rate for the area. You can find this information from your local lender or you can use an online mortgage calculator that specializes in New Mexico mortgages. The exact rate will vary, depending on the term of the loan, the amount borrowed, and the credit score of the borrower. With this information, you can calculate the approximate mortgage insurance charge you would be liable for when making the purchase.

Who is required to use mortgage insurance companies in Clovis?

In Clovis, NM, anyone who finances 80% or more of the purchase price of a home is required to carry mortgage insurance. This helps to ensure that the lender is compensated in the event of a default on the loan by the homeowner, giving lenders more confidence to provide loans to potential homeowners. In addition, this helps to protect borrowers by lowering the risk of foreclosure and loan defaults if something happens to the borrower. Mortgage insurance is an important part of the home-buying process and all borrowers should plan to budget for it as part of their purchase.