Uncategorized August 29, 2022

Does Mortgage Insurance get a Bad Rap?

🏡 Mortgage insurance is a policy issued on your mortgage loan that allows your lender to recapture any money lost in the event of an early default and/or during a foreclosure process. The sole purpose of this type policy is to lower the amount of risk for the lender.
🤔 Does mortgage insurance really deserve the bad reputation that precedes it?
💸 It does cost you, the borrower, more money every month, which translates to a higher mortgage payment and less money in your pocket.
🤗 But, let’s explore what it does accomplish.
🔻 The policy allows the borrower to use a lower down payment when purchasing a home. This can be a huge benefit to first-time buyers.
🔺 It also allows lenders to lend more money to potential buyer homebuyers by having the ability to recapture funds in the event of a default.
The bottom line is mortgage insurance assists a very large segment of buyers annually into the market place. According to US Mortgage Insurers (USMI), mortgage insurance assisted nearly 2 million conventional borrowers in 2021 alone.
👌🏼 In my opinion, the mortgage insurance policy could be one of the largest contributors to the American Dream of homeownership across the nation.
✨ Opportunity as opposed to punishment!
If you’re interested in mortgage insurance or have any questions, give us a call!
☎️ 801.502.7447⁠
📧 Raquel.Taylor@cbrealty.com⁠