Private Mortgage Insurance

Private mortgage insurance, or PMI as it is commonly called, is a form of
insurance that is designed to offer protection for the lender against
circumstances of non-payment, should the borrower default on a mortgage
loan

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Are the up-front mortgage insurance premiums on FHA loans tax deductible?

This up-front mortgage insurance premium (MIP) was rolled/financed into my loan.
And if they are tax deductible, do I deduct all of it on the tax year I closed on my home? Or do I have to spread out the deductions over the lifetime of the loan?
Also, please provide a reference with your answer. I’ve done plenty of online searches and there is an abundance of conflicting information.

yes they are

Insurance Information : How Does Mortgage Insurance Work?

Mortgage insurance is designed to pay mortgage payments in the event that a homeowner is unable to make payments. Let mortgage insurance give you peace of mind about not losing your house with tips from an insurance agent in this free video on insurance.

Expert: Vic Schumacher
Contact: www.HPEFinancialServices.com
Bio: Vic Schumacher is part of HPE Financial Services, a brokerage insurance company representing all major carriers.
Filmmaker: Christopher Rokosz

Duration : 0:1:18

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How do you access mortgage insurance if you are unable to make a payment?

I may not have a clear understanding of how mortgage insurance works. can anyone clarify?

You don’t! While you do pay, it is to protect the lenders position not yours! If they have to file bankruptcy. The insurance helps them not you! Now to address the real issues. If you can’t pay and have a good reason…you should contact the lender and talk to them about your situation. The phone number is on the monthly statement. Don’t speak to the collection department that is just an exercize in futility they get paid to COLLECT! See the problem? Find a way to speak to the loss mitigation department. Find a local REALTOR who specializes in Loss mitigation. You may e-mail me and I can refer you to someone who can help who doesn’t charge you anything up front. You never pay a loss mit consultant who comes to your house! Never! You only pay the bank and they pay us. Watch what you do there are scams out there! Good Luck.

Mortgages : How to Get a Loan Without Private Mortgage Insurance (PMI)

In order to obtain a loan without private mortgage insurance, a person needs to have the balance of the loan percentage at 80 percent or below. Avoid paying private mortgage insurance, or PMI, with tips from a licensed mortgage broker in this free video on personal finance and real estate.

Expert: Adriel Torres
Contact: ultimatecredittoday.com
Bio: Adriel Torres has been in the mortgage business for over a decade. He has owned two mortgage companies and is a licensed mortgage broker.
Filmmaker: Christopher Rokosz

Duration : 0:1:11

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How do i add a formula to calculate for adding mortgage insurance?

I have created a simple mortgage calculator which will work out the mortgage payments for a specific loan to value (5%, 10%, 15% down etc) and it will add mortgage insurance and calculate the income required. How do i add a formula which will work out the mortgage insurance for any down payment amount. i’m looking for something like :

if down payment is X then mortgage insurance is Y

in canada the mortgage insurance will change with longer amortization as well
thanks for any help

In the us mortgage insurance will change with the amount financed and how much above the 80% the loan is. The tricky part in putting this in a calculator though is that it will also change some with different loan programs. Basically what I am trying to say is there is no set formula that can be applied to everyone. You can give people an idea, about $80/mo for a $150,000 95% loan but like I said its just going to be an idea since you dont want to give people a % from one program and have them use another and get a different figure.

Eliminating Private Mortgage Insurance

You have to insure your home. But do you really have to insure that mortgage too? It’s called private mortgage insurance, and according to money expert Stacy Johnson, for many people, it’s expensive and unnecessary.

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Private Mortgage Insurance (PMI)

With private mortgage insurance (PrivateMI), home buyers have the same fixed payments each month. PrivateMI is affordable, predictable, and cancelable. For borrowers who don’t have a 20% down payment, PrivateMI helps them get into their home faster, with less risk than other financing options. And it’s only there for as long as the home buyer needs it, since PrivateMI can usually be canceled once 20% equity is achieved.

PrivateMI — Today’s smart choice.
Learn more at www.privatemi.com.

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Mortgage Tips & Information : What Is Private Mortgage Insurance?

Private mortgage insurance is added onto a loan when the borrower cannot provide a 20-percent down payment, as the lender takes a higher risk in this situation. Pay private mortgage insurance when making a small down payment with tips from a mortgage broker in this free video on mortgage loans.

Expert: Matthew McKillen
Contact: www.innovativefg.com
Bio: Matthew McKillen has more than 21 years of industry experience in arranging loans for his clients.
Filmmaker: Christopher Rokosz

Duration : 0:1:2

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What is private mortgage insurance and who gets the money when a person cannot fullfil their loan obligations?

If you don’t put down 20% on a home loan you must pay Private Mortgage Insurance. So with all these loans going belly up why did ppl pay this and who took the money?

Hi there!

Private Mortgage Insurance, or PMI, is insurance that protects the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20 percent of the home’s purchase price. (Note, however, that FHA and VA loans have different insurance guidelines.)

Private mortgage insurance is generally included in your monthly mortgage payment and may be tax-deductible (double check with your tax advisor). Of course, lenders know that not every home buyer has the funds to provide a 20% down payment. That’s why some lenders offer innovative loans designed to avoid costly private mortgage insurance.

To answer your second question, PMI is designed to protect the lender or the company servicing your loan in case the homeowner defaults. The reason PMI exists is exactly for the reason you mentioned… as insurance to the lender/servicer in case the homeowner is unable to manage the home loan payments any longer.

Hope this helps!