Mortgage Insurance Explained: What You Need to Know!
If you've ever heard the term mortgage insurance and wondered what it actually means (or why you're paying for it), you're in the right place! In this video, we’re breaking down everything you need to know about mortgage insurance—what it is, why it exists, and how it impacts your home loan.
What is Mortgage Insurance?
Mortgage insurance is a policy that protects lenders in case borrowers default on their home loans. It’s commonly required when buyers put down less than 20% on a home. While it doesn’t protect you as the borrower, it does help you secure a loan with a lower down payment, making homeownership more accessible.
How Can You Remove Mortgage Insurance?
One of the biggest questions homeowners have is: Can I get rid of mortgage insurance? The answer depends on your loan:
🔹 PMI on Conventional Loans – Once you reach 20% equity, you can request its removal. At 22% equity, lenders automatically cancel it.
🔹 FHA Loans – If you put less than 10% down, MIP stays for the life of the loan. If you put 10% or more down, MIP is automatically removed after 11 years.
🔹 VA Loans – No mortgage insurance means no need for removal!
Is Mortgage Insurance a Bad Thing?
While it’s an extra cost, mortgage insurance actually helps many buyers purchase homes sooner rather than waiting years to save a full 20% down payment. Plus, with rising home prices, waiting too long could cost you more in the long run.
Final Thoughts
Mortgage insurance might not be the most exciting topic, but understanding it can save you money and help you plan for homeownership more effectively. Whether you're a first-time homebuyer, a real estate investor, or someone looking to refinance, knowing how mortgage insurance works is crucial to making the best financial decisions.
💡 Got questions about mortgage insurance? Drop them in the comments! And don’t forget to like, subscribe, and follow for more expert real estate and mortgage tips!
Company Information:
Company Name: Unyque Financial
Host Name: Luna Petty
Company URL: https://www.unyquefinancial.com/luna-petty/
NMLS Numbers: Luna Petty (NMLS #388419), CA Real Estate Agent (DRE #01347590)
Licensing Information: Equal Housing Opportunity https://www.nmlsconsumeraccess.org
Contact Number: 626-796-7164
Hashtags:
#HomeOwnership #MortgageInsurance #FirstTimeHomeBuyer #RealEstateEducation #HomeLoanHelp #BuyingAHome #PMI #FHA #VAHomeLoan #YourRealTalkPodcast
Disclaimer:
The information is intended to be viewed for informational purposes only. The content contained herein is not guaranteed or endorsed by the company, or any company mentioned, nor is this content meant to be an offer of credit. The information contained in this video may not be wholly or at all applicable to every situation or jurisdiction. You are strongly encouraged to consult your professional mortgage advisor before acting upon any information in this video. The information provided is for use as a training tool only. The information is not intended, nor should it be relied upon for any other purpose.
