Posted on: 21st Jan, 2010 08:21 am
i have an interest only morgage i was considering remorgaging to pay off debts on loans/credit cards/catalogues, my i still owe $20.000 on existing morgage, my home is valued around $70.000 but i dont have morgage insurance will i still be eligible to applt even though ive no morgage insurance?
iris do you mean mortgage insurance or homeowner's insurance? you most definitely need the latter - now and later.
as for mortgage insurance, that's applicable only when you exceed 80% of the property's value with your loan balance. for example, if you borrow $56000 the loan to value ratio is 80% and there'd be no need for mortgage insurance. if you borrowed $60000, the loan to value ratio becomes 86% and the lender would acquire the mortgage insurance that's needed. you would not be charged with the responsibility of purchasing it.
as for mortgage insurance, that's applicable only when you exceed 80% of the property's value with your loan balance. for example, if you borrow $56000 the loan to value ratio is 80% and there'd be no need for mortgage insurance. if you borrowed $60000, the loan to value ratio becomes 86% and the lender would acquire the mortgage insurance that's needed. you would not be charged with the responsibility of purchasing it.
>>will i still be eligible to applt even though ive no morgage insurance?
mortgage insurance isn't required, but, as george mentioned, homeowners insurance is required. you won't need it when you start the refinance process, but the underwriter won't allow the loan to fund until you provide proof of insurance.
mortgage insurance isn't required, but, as george mentioned, homeowners insurance is required. you won't need it when you start the refinance process, but the underwriter won't allow the loan to fund until you provide proof of insurance.
raymond, in this environment, it's far more likely for an underwriter to request verification of the existence of homeowner's insurance prior to issuing a clear to close.
Exactly George. I see it a lot with Reverse Mortgages, because homeowners aren't required to carry homeowners insurance once their mortgage is paid off, so many of don't. But they've got to have it when they have a mortgage, so we've got to show proof of insurance before the Underwriter issues a clear-to-close. She won't allow it to fund without insurance.
So what did I do? I got licensed to sell insurance, but the wrong kind. I can sell Life Insurance and such, but not Homeowners Insurance. That'd require a Property and Casualty license. I got the other type of license because many of my clients were getting Reverse Mortgages so they could afford the premiums for Long Term Care insurance, and I've only sold one LTC policy. I could have sold lots of Homeowners Insurance policies.
So what did I do? I got licensed to sell insurance, but the wrong kind. I can sell Life Insurance and such, but not Homeowners Insurance. That'd require a Property and Casualty license. I got the other type of license because many of my clients were getting Reverse Mortgages so they could afford the premiums for Long Term Care insurance, and I've only sold one LTC policy. I could have sold lots of Homeowners Insurance policies.
so what are you waiting for?
and how come i haven't sought out such a license as well?
and how come i haven't sought out such a license as well?
>>so what are you waiting for?
In California, schooling is 52 hours, and the classroom is in Anaheim, a couple cities away. I recently became a Reverse Mortgage Loan Officer for Bank of America, and that's taking a lot of my time right now. You're right though ... I really should seriously add it to my list of things to do. It just makes sense.
>>and how come i haven't sought out such a license as well?
You may want to seriously consider it - the residual income is the nicest part, especially for retirement. California is the only State with rigid licensing requirements - so you may want to check out your State's requirements. It may be a fairly simple process for you to get licensed.
In California, schooling is 52 hours, and the classroom is in Anaheim, a couple cities away. I recently became a Reverse Mortgage Loan Officer for Bank of America, and that's taking a lot of my time right now. You're right though ... I really should seriously add it to my list of things to do. It just makes sense.
>>and how come i haven't sought out such a license as well?
You may want to seriously consider it - the residual income is the nicest part, especially for retirement. California is the only State with rigid licensing requirements - so you may want to check out your State's requirements. It may be a fairly simple process for you to get licensed.