Are You Still Paying Mortgage Insurance?

Filed under: Mortgage Insurance

I have mortgage insurance on the mind this week. There has been so much talk about housing appreciation – the year over year numbers show about a 15% increase in home appreciation.

Appreciation is one of the most important things in your home investment. If you bought a house a year ago, it means you are up 15% on your value this year. Of course, every house is different. But this is the overall trend we are seeing in the real estate industry right now.

Real World Numbers

With that in mind, if you have a $500,000 house and you put 5% down on the house, then it means your original loan was for $475,000. If you had 5% appreciation, it means you are at $575,000 on the value right now.

This puts you at about 82% on the loan-to-value ratio. You need to be at 80% or below, which means that there are ways to buy out that mortgage insurance.

It’s Time to Consider a Refinance

The moral of the story: if you have mortgage insurance on your mortgage currently, then you should be considering a refinance to get rid of the mortgage insurance payment. Especially if you are in an FHA loan.

If you’ve been in a house for a year or more (in some cases a little less), then you’ll probably benefit from a refinance to save money on the mortgage insurance.

If you or anyone you know wants to take a look at options, it’s easy to get started. All I need to see is a mortgage statement. Send it over to me, I’ll take a look and see if there is anything we can do to help your personal situation and help you save money.

I’m Here to Help

Mortgage insurance is just an extra cost that doesn’t make sense once you reach a certain point in your mortgage. If you have questions, then talk to me about your options so I can help you find the ideal solutions for your needs.

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