mortgage insurance in Lexington, MA

What do I get with mortgage insurance Lexington?

Mortgage insurance in Lexington, MA provides additional protection for the lender in case of a homeowner’s default. It is typically required with loans backed by the Federal Housing Administration (FHA) and is a condition imposed on a borrower who pays less than 20 percent of the home’s purchase price as a down payment. Mortgage insurance in Lexington is tailored to meet the borrower’s needs and can be cancelled when the loan-to-value ratio reaches 78 percent, enabling the borrower to receive instant equity in their home.

Can I avoid a Lexington mortgage insurance policy with a larger down payment?

Yes, making a larger down payment on your mortgage in Lexington, MA will allow you to avoid mortgage insurance. Generally, lenders require private mortgage insurance (PMI) if the borrower's down payment is less than 20% of the purchase price. By putting more money down, you can reach the 20% threshold and eliminate fees for and ongoing costs of PMI. Additionally, the more money you put down initially, the lower your monthly payments will be for the length of the loan.

What are the drawbacks of a private mortgage insurance policy Lexington?

Private mortgage insurance (PMI) can be beneficial for Lexington, MA homebuyers who don't have a 20% down payment or sufficient equity for a traditional loan. The drawback, however, is that PMI is expensive and adds an extra expense to monthly mortgage payments. PMI payments are typically 0.5% to 1% of a homebuyer's loan balance, so for expensive homes in Lexington, MA, the cost of PMI can add up to thousands of dollars over the short term.

Who is eligible for FHA mortgage insurance near Lexington?

In Lexington, MA, anyone looking to buy a primary residence is eligible for FHA mortgage insurance. This includes first-time homebuyers, as well as those with prior homeownership experience. To qualify, you must be credited-approved and have a valid Social Security number. Additionally, you must have a steady employment and income history that demonstrates stability and reliability in order to qualify for FHA mortgage insurance in Lexington. Generally, all applicants should have a valid United States government-issued ID or a valid Social Security number in order to qualify.

Do Lexington mortgage insurance companies offer USDA insurance?

USDA mortgage insurance, also known as the Rural Development loan, is a zero-down mortgage option available to buyers in certain rural and suburban areas, including Lexington, MA. It provides veterans and low income families the opportunity to purchase a home without any down payment. USDA loan programs have flexible credit requirements, making them a great option for first-time home buyers, or those who may not have the best credit score or have gone through a bankruptcy. The mortgage insurance program also comes with lower mortgage interest rates provided by the Department of Agriculture.

What are the drawbacks of a VA loan in mortgage insurance policies near Lexington?

In Lexington, MA, one of the primary drawbacks of a VA loan is that buyers may be limited in the types of lenders they have access to. Not all lenders offer VA loans and, while some VA-approved lenders may have a range of loan options available, others offer VA loans as their only option. This could potentially limit the amount of loan options available to a buyer, resulting in a higher interest rate or other unfavorable terms. Additionally, VA loans often come with higher closing costs and fees than other loans, which can make financing such a loan more expensive.

What factors influence the cost of mortgage insurance in Lexington?

In Lexington, Massachusetts, the cost of mortgage insurance is largely impacted by factors like the size of the down payment, the duration of the loan, the type of loan, and the borrower’s credit score. Generally, the higher the down payment, the lower the cost of mortgage insurance. Similarly, loans with a shorter duration will cost less, but come with a higher monthly payment. Another key factor is the type of loan; a conventional loan usually carries higher insurance fees than a government backed loan such as an FHA or VA loan.

Can I cancel my Lexington mortgage insurance policy early?

Yes, you can cancel your mortgage insurance early in Lexington, MA. You will need to meet certain qualifications, such as having your mortgage paid down to 80% or less of the original loan amount. Our knowledgeable team of loan officers can help you determine if you qualify for cancellation and walk you through the process. Additionally, the Federal Housing Administration (FHA) offers the Home Equity Conversion Mortgage (HECM) for those 62 years or older. This program allows homeowners to cash out up to 80% of the value of their home while eliminating mortgage insurance premiums.

Is there an online calculator for mortgage insurance from a Lexington mortgage insurance company?

Yes, there is an online calculator available for mortgage insurance in Lexington, MA. If you are interested in calculating your mortgage insurance rate, you can use this free online calculator. With this calculator you can view potential interest rates and estimated payments for your particular loan amount, loan type and loan term. Additionally, you can use this calculator to compare estimated bank rates with private mortgage insurance rates. The calculator also provides information about monthly costs and the amount of money you can save if your loan is paid off and no mortgage insurance is needed.

What happens if I don't use mortgage insurance companies in Lexington?

If you are thinking of purchasing a home in Lexington, MA without mortgage insurance, it is important to understand that the lender is not taking on full risk with this arrangement.Homeowners in Lexington who do not get mortgage insurance are taking on greater financial responsibility in the event of a default because the lender does not have the assurance of mortgage insurance that if the borrower is unable to pay the note, the loss will be recovered by the mortgage insurer.