What mortgage insurance factors are important?


There are some mortgage insurance factors that have to be considered in order to determine your mortgage insurance premiums and terms.

Mortgage Insurance Factors

Firstly, your mortgage insurance will depend on the down payment you provide to the lender. The bigger the down payment, the less the mortgage insurance premiums you will pay. Also, lenders are required to cancel your PMI if you are on track with payments as soon as you reach 22 or 23% equity; you could request mortgage insurance cancellation at 20% equity and if you are current with your payments, your lender has to honor your request.

Anther mortgage insurance factor is your loan type. If you are getting a conventional loan, it will be insured to up 20% of the house value. If you are getting a VA or FHA loan, they are 100% insured. However, partial FHA MIP refunds are available.

Your income is yet another of the important mortgage insurance factors. If your income is less than $110,000 annually, you enjoy full tax deductibility of the PMI. If your income exceeds this limit, you are entitled to partial mortgage insurance tax deductions until 2010 included.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: