Best Answer

The amount you pay (generally monthly in your house payment) for the morgage insurance policy. Most lenders require you to carry mortgage ins or PMI if you finance more than 80% of the value of the home, or for other credit risk reasons. As a side note I have successfully had the mortgage ins dropped after my principle was lower than the 80% on two different mortgages.

User Avatar

Wiki User

โˆ™ 2014-11-08 08:41:34
This answer is:
User Avatar
Study guides


22 cards

If you were laid off and apply for insurance coverage on your wife's group policy do you have to answer a medical questionnaire

How many grams of cholesterol should you eat each day to maintain a healthy diet

What would cause a fluttering inside the ear canal

Why is beef fat a solid at room temperature

See all cards
4 Reviews

Add your answer:

Earn +20 pts
Q: What is a mortgage insurance premium?
Write your answer...
Still have questions?
magnify glass
Related questions

Do Canadian mortgages provide insurance?

Some Canadian mortgages do charge a premium for mortgage default insurance. If a mortgage company includes this type of premium in the mortgage, they are obligated by law to disclose the amount to the borrower.

What would make a mortgage insurance premium increase?

There are many things that would make a mortgage insurance premium increase. Mortgage insurance is used when someone dies and pays money so that the mortgage will be paid. Smoking or participating in dangerous activities will increase the premiums.

How do you calculate mortgage insurance premiums?

1. alculate the Loan to Value ratio (LTV). LTV = loan amount /total mortgage value, where loan amount = total value of mortgage --down payment on the property.If the mortgage value is $100,000 and the client makes a 10-percent down payment ($10,000), the loan value is $90,000. LTV ratio is equal to 90000/100000 or 0.9 or 90 percent.2. Determine the mortgage insurance rate. Rates are different for private mortgage insurance (PMI) and an FHA loan. In order to determine the correct insurance rate, contact the insurance provider. Generally, PMI insurance rates fall within the range of 0.5 to 1 percent. FHA loans require a premium of 1.5 percent of the loan value at closing; monthly premiums fall in the range of 0.5 percent of the loan amount. Contact the insurance provider to determine the correct insurance rate.3. Calculate the premium with the following formula: Mortgage insurance premium (annual) = LTV amount x mortgage insurance rate. Mortgage Insurance premium (monthly) = mortgage insurance annual premium / 12. For example, if the LTV is $90,000 and the mortgage rate is 1 percent, the annual mortgage insurance premium = $90000 x 0.01 = $900, and the monthly mortgage insurance premium = $900 / 12 = $754. Research the benefits, liabilities and costs of owning mortgage insurance. Mortgage insurance may be tax deductible. However, the cost of the insurance can be substantial on large loans. Generally, the insurance can be canceled when 20 percent of the loan has been repaid, but the terms vary according to the provider.

How long do you pay for mortgage insurance premium?

You have the option to get a mortgage insurance for the length of your mortgage contract, or you can choose 10 years, 15 years, 20 years, 40 years, etc.

How do you know if you had mortgage insurance?

This depends on what you mean by mortgage insurance. If you are talking about products like PMI (Premium Mortgage Insurance) look on your escrow billing and it will be listed. If you are talking about a life insurance policy that would be either through credit life with your mortgage company or separately through an insurance company.

How long Is the Mortgage Insurance Premium paid?

Could be paid for full term of your entire mortgage or paid off in full.

How do you find out if your deceased relative had mortgage life insurance?

One way is to check with the lender. Most lenders have affiliations with mortgage life insurance companies to provide this service and in most cases the insurance premium is included in the mortgage payment.

What does PMI stand for when referring to insurance?

With regards to insurance, the acronym PMI stands for Private Mortgage Insurance. This is an insurace where the borrower of a mortgage pays a premium, but if the borrower defaults, the lender gets the money. This helps protect the lender in cases of larger mortgage values.

When paying off a loan. Is mortgage insurance premiums still due?

No, unless it specifically states in the mortgage contract the last insurance premium is to be paid with the loan payoff. If you don't pay it all they can do is cancel your insurance which you don't want anymore.

What if your spouse die how can you find out if they had life insurance on the house?

Look at the HUD-1 executed when you bought the house and look at your annual 1098 that the mortgage company gives you. One or the other will show the insurance premium. If there is no premium, your wife had no credit life insurance.

How do I know if I have Mortgage insurance?

i have mortgage and homeowner insurance and fidc risk insurance

Is mortgage insurance required on manufactured housing loans through FHA?

MIP (mortgage insurance premium) is required on all 30yr fixed FHA loans. 1.5% MIP funding fee, and the monthly 0.5% MIP payment

People also asked