Albuquerque loan officer Eric Chavez with Loan Logic has been doing video blogs longer than I have, so I thought I’d share some of them here on Albuquerque Real Estate Buzz.
In this video, Eric talks about mortgage insurance and has a great tip on how to reduce your monthly payments by having the seller of your new home pay for your mortgage insurance.
“Did you know that there’s different ways to pay for mortgage insurance?
So let me first start by telling you that mortgage insurance in and of itself isn’t such a bad thing. After all, without it you’d have to put 20% down, but there’s three different ways that you can pay for mortgage insurance. The most common is to make it in your monthly payment, you can also have it in one lump sum upfront mortgage insurance amount that’s tacked onto your loan, or you can have it split, part of it in your monthly payment, part of it tacked onto your overall loan.
One great feature is that if you tack it on top of your overall loan, you can have a seller concession which they can pay for up to 3% of the total loan amount to cover that upfront mortgage insurance, so if you put less than 20% down, have your seller cover your mortgage insurance, you’ll never have to pay it and you’re ready to buy your home.”
Thanks Eric, what a great strategy to help keep a homebuyer’s monthly payments low!
Eric Chavez does mortgages and home loans right here in Albuquerque NM.
Thanks Eric, and keep up the good work!