Hi, it’s Tom Heath with the Mortgage Guidance Group at Nova Home Loans, and this is our weekly installment of mortgage and real estate related matters. This week’s topic is mortgage insurance. I know what you’re thinking, most clients are doing everything they can to avoid avoid mortgage insurance or get rid of mortgage insurance because it’s an unnecessary cost. Well, in this particular climate, we’re finding a very interesting development where investors in the secondary market are very interested in loans with mortgage insurance. I’ve actually had some borrowers putting 20% down, that when we repriced the loan with a 15% down payment, we were able to lower their interest rate by adding mortgage insurance and the cost of the mortgage insurance was less than the higher interest rate. So in other words, the overall combination of 85% loan to value with a 15% down payment made a little bit more sense for some of these particular clients.
Every case is individual, so we certainly look at each person for their specific scenario and make sure we help them find the right solution. Don’t be afraid to ask questions and dig into options to see what makes the most sense. If you have questions on this, want to see how it works, give us a call, shoot us an email. You can find us a contact form on our website MGGroupTucson.com. And as always, if you have a topic you would like us to cover, just let us know, we’d be glad to answer it. Thanks so much.