Question:

Are there alternative mortgage insurance premium plans?

Answer:

Yes, there are alternative mortgage insurance premium plans, but no lender is obligated to disclose those to you. However, you are able to research the topic and ask the lender when you already know about an alternative mortgage insurance plan.

Paying Mortgage Insurance Upfront

As an alternative of making monthly mortgage insurance payments, one could ask to roll an upfront mortgage insurance premium into the loan. In this case, you will owe more than you borrowed but part of this upfront payment will be considered interest and will be tax-deductible.

Also, early payment of the loan results in a refund of the mortgage insurance premium - if the loan is repaid in a year, the alternative mortgage insurance premium is repaid almost 100%; in 5 years the mortgage insurance refund drops to 50%, and repaying the loan in more than 10 years will probably not allow for any refund. However, few people are aware of that option.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
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Common misspellings: mortage and morgage