Private Mortgage Insurance Pricier for Single Borrowers

Private mortgage insurance is required on conventional mortgages when there is less than 20% equity on a property, when the loan-to-value is greater than 80%. Private mortgage insurance (pmi) that is paid monthly automatically drops off the mortgage payment once the mortgage balance reaches 78% of the original loan amount. Private mortgage insurance premiums are intended to be risked based. The more equity or down payment on a home and the higher your credit scores are, the lower the premiums tend to be. [Read more…]

Mortgage Insurance Tax Deductible for 2015 and 2016

Money in pocketI’m receiving gleeful emails from various private mortgage insurance companies announcing that mortgage insurance will once again be tax deductible. This is thanks to the PATH Act extending certain tax benefits to eligible home owners.

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Puget Sound’s Hot Real Estate Market is Good News for Refis

mortgage-porter-sold-homeIt’s no secret the the Puget Sound region has been experiencing a very hot real estate market… so hot in fact that it may be causing some home buyers to feel a little burned from competing with multiple offers as well as renters contending with rapidly rising rents. Recently KOMO 4 News shared that that Seattle currently has the nations hottest housing market. This is not only good news for those who are wanting to sell their homes, it’s also good news for home owners who may benefit from a refinance.

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Mortgage Insurance Deductible through 2014

You may have heard that last week, Congress passed and President Obama signed the 2014 Tax Increase Prevention Act. It has some good news for home owners who currently pay various forms of mortgage insurance. If you pay mortgage insurance, including private mortgage insurance (pmi), or VA, FHA or USDA forms of mortgage insurance during 2014,  you may be able to deduct that on your 2014 income taxes.

Before you get too excited, this act does not extend the mortgage insurance deduction past 2014.

So if you are paying any form of mortgage insurance, especially if it’s private mortgage insurance or FHA mortgage insurance, it still makes sense to see if you can eliminate or reduce your payment with a refinance as you will not be able to deduct your mortgage insurance during 2015 (as things currently stand).

If I can help you with your refi or home purchase on property located anywhere in Washington state, please contact me!

 

Mortgage Insurance loses tax deduction benefit in 2014

mortgageporterraiseOver the past few years, home owners have enjoyed deducting private mortgage insurance (pmi) premiums from their income tax. This is also true for government forms of mortgage insurance (aka funding fee or guarantee fee) with FHA, VA and USDA mortgage loans. This benefit is coming to an end effective on 2014 tax returns.

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80 – 10 – 10’s now are back… at Mortgage Master Service Corporation!

It’s back… the 80/10/10 mortgage program which allows home buyers to put just 10% down and avoid having private mortgage insurance via a second mortgage/home equity line of creedit.  The second mortgage/home equity line of credit technically does not have to be at 10% with the first mortgage at 80% of the loan to value (sales price). Often times, the mortgages may be structured around conforming loan limits, as long as the total combined loan to value is 90%.

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Seattle Rising Home Prices is Good News for Refinancing

If you have been waiting for Congress to pass HARP 3.0 or have been previously turned down for a refinance because of lost equity in your home, you might consider trying to refinance again.

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Answering a question regarding HARP 2.0 and PMI

Dear Rhonda:

I currently pay PMI on my mortgage, if I refinance under HARP 2.0, after refinance, will the PMI still exists? Would the PMI premium be lower since the amount refinanced is lesser than the previous mortgage?

Dear Reader:

Yes, if you currently pay PMI on your HARP 2.0 eligible mortgage, you will also have private mortgage insurance in your new mortgage payment with your new refinanced mortgage.  It will be based on the same coverage (percentage) amount as your existing pmi. So if your mortgage balance is lower, the monthly pmi payment may be slightly lower as well.

I recommend comparing your existing payment (PIMI) to the proposed new payment, factoring in when your existing PMI may drop off.  If you’re within months from your existing pmi dropping off, it could be worth delaying refinancing, however, if t’s after December 2013 (when HARP 2.0 is currently scheduled to terminate) it’s probably in your favor to refinance now.

If your home is in Washington state, where I am licensed to originate, I’m happy to help you.