Las Vegas Mortgage Insurance
Mortgage insurance is a fee you pay on a monthly basis (except for VA loans) when you have less than a 20% equity position in the property when you purchase it. In other words, if you put less than 20% down, you will be required to pay a monthly mortgage insurance fee. This is because the loan is considered a higher risk than one where the buyer has put more money down. A private mortgage insurance company collects this monthly premium, but if you default on the loan they have to make up the difference to the mortgage lender.
The rate at which you are assessed this monthly mortgage insurance premium does depend on how much you put down. On FHA loans there is also an additional "up front" mortgage insurance premium (MIP) equivalent to percentage of the loan amount. This amount in usually financed into the mortgage, and in addition FHA also requires a monthly mortgage insurance premium.
On VA loans the VA buyer usually pays just a one-time up front VA funding fee (also usually financed into the loan) but with no monthly fee. The VA funding fee varies, depending on whether the Veteran is using his/her VA eligibility for the first time or was disabled during service.
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Eliminating Mortgage Insurance
On conventional loans, once you have reached a higher equity position - at least 20% equity - due to either normal appreciation or by paying extra amounts on the principal, you can petition to have the monthly mortgage insurance premium removed. FHA rarely allows the buyer to remove the mortgage insurance premium no matter how much equity the buyer has achieved in the property.
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