Chris Graves, Certified Mortgage Advisor

Providing Mortgage Services in MA, NH, ME, RI and FL

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An Overview Of Lender Paid Mortgage Insurance For MA Mortgages

Mortgage insurance is generally required when a home buyer borrows more than eighty percent of the value of a home. It protects mortgage companies against financial loss should a homeowner default on. Even though it is for the benefit of the lender, it is normally billed to the buyer as a closing cost and additional monthly fee. In some cases, a mortgage company will cover the cost of the mortgage insurance. This blog provides an overview of lender paid mortgage insurance for MA mortgages.

An Overview Of Lender Paid Mortgage Insurance

Some lenders will offer lender paid mortgage insurance loan options for a higher interest rate. When a buyer pays mortgage insurance directly, it remains in effect while the loan amount exceeds eighty percent of the purchase price or current appraised value. So at some point, the monthly payment decreases when mortgage insurance is no longer applicable. With lender paid mortgage insurance loans, this reduction in monthly payment does not occur since the higher interest rate continues for the life of the mortgage. The only way to alter it is to refinance.

Owner Paid versus Lender Paid Mortgage Insurance

Although the interest rate on lender paid mortgage insurance mortgages may be greater, it can still lead to a lower monthly payment for certain buyers. Additionally, mortgage insurance may not be tax deductible for all buyers whereas interest paid on a loan is normally tax deductible. Therefore, opting for an increased interest rate and lender paid mortgage insurance might also result in better tax savings for some homeowners.

Help with MA Mortgages

Lender paid mortgage insurance programs may be a good solution for certain types of buyers. It is important to compare it to other types of mortgages and understand the short term and long-term differences. The above is an overview of lender paid mortgage insurance for MA mortgages and is provided only as an introduction. Contact, Christopher Graves at Emery Federal Credit Union at 781-759-1200 x22 or christopher.d.graves@gmail.com for assistance

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Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.