Mortgage Insurance (MI) is generally required for a borrower who has less than 20% equity in her home. MI that is paid by the borrower is referred to as BPMI*, and premiums are typically paid monthly as a part of the housing payment. Additionally, in some circumstances lenders pay for the MI in a single premium at closing, and this is known as LPMI* (Lender Paid Mortgage Insurance).
If home values have increased in your area, you may no longer need mortgage insurance! We can review your current mortgage terms and evaluate home values in your neighborhood to determine if you have enough equity in your property to eliminate your monthly MI payment. Even if your equity position still requires MI, you could potentially save money by refinancing into either a mortgage with LPMI or a mortgage with a reduced monthly MI premium.
Some borrowers can deduct MI payments from their taxes!
Congress has extended legislation that allows borrowers with incomes less than $110,000 to deduct at least a portion of their mortgage insurance (MI) payments.
- If the adjusted gross income (AGI) is less than or equal to $100,000, 100% of MI payments can be deducted.
- The deduction is phased out by 10% for each additional $1,000 of income reported (e.g. if AGI is $101,000, 90% of MI payments can be deducted; if AGI is $105,000, 50% of MI payments can be deducted
- Effective for both refinance and purchase transactions closed after 12/31/2014. Deduction is available for MI premiums paid or accrued between 1/1/2015 and 12/31/2016.
Home Buyer Tips
- 2 Myths That May Be Holding You Back From Buying
- 5 Reasons Home Ownership is a Good Financial Investment
- Do’s and Don’ts During The Loan Process
- FHA 90 Day Property Flip Waiver
- Getting a Mortgage: Why So Much Paperwork?
- How to know if it’s a condo?
- Look for a Luxury Home? Now’s The Time To Act!
- Ready To Make An Offer? 4 Tips For Success
- The Perfect Home Loan Application
- What You Need To Know About VA Loans
- Condo Loans - Low Down Payment
- How We Safe Guard Your Information
- Mortgage Insurance
- Niche - Unique Mortgages
- Path 2 Buy
- Rent vs. Buy
- Rising Rent - No Problem
- Student Loan Debt
- The Mortgage Process
- USDA-Wide Open Spaces
- FHA “Back-To-Work: Extenuating Circumstances” Program
- FHA 203k Streamline Rehab Loan
- HomeStyle Renovation
- HUD-184 Native American Program
- Jumbo Loans
- Veterans Assistance Loan Benefits
- Reverse Mortgage
- 3 Reasons Why First-Time Home Buyers Love FHA
- FHA - Home Ownership Opportunities
- FasTrac Approval Process
- Home Ready Program
- Jumbo Plus Loans
- Loan Programs - Pros & Cons
- How Low Interest Rates Increase Your Purchasing Power
- The Power of Pre-Approval for Agents
- Where Are Interest Rates Headed?
- Why Pre-Approval Should Be Your First Step
- Delayed Financing Options
- Discount Points vs Premium Pricing
- Duplex Financing Options
- FICO Scores
- Flipped Property Finance Options
- Jumbo - Credit Challenged
- No Lender Fees
- Union Advantage
- FHA - Benefits
- FHA - Credit Requirements
- FHA - Limited Savings
- FHA - Refinance
- Family Opportunity Program
- Fannie Mae - 97% LTV
- HomeScout: Your Unfair Advantage
- Jumbo - Medical Loan Program
- Luxury Home - 2 Million Max
- NHF Platinum - Down Payment Assistance
- Non-Resident Alien Home Loan