laws for the state of on mortgage insurance

Nobody can make you do anything you don't want to do. But they don't have to give you a mortgage either.

Hello Crmtruckinginc,

If you are making less than 20% down payment for purchasing a property with a mortgage, you will have to pay mortgage insurance.

correction you wont have to pay mortgage insurance if you have a loan over 80% but most lenders offering conforming loans will require that you do have Mortgage Insurance. On an FHA loan you required to have Mortgage Insurance no matter what (even if you are below 80% LTV)

Good point Eugene,

If it is a subprime loan they won't make you pay up to 100%. Of course the rates are currently laughable.

My daughter wants to to a loan remodification under the new law President Obama passed two weeks ago. Her mortgage company says she can't because she has a "state financed loan" and that the state of Maryland will lose money if her loan is modified. What does this mean? Thanks

Hi Dinah,

As far as I know if you had made a loan before 1st of january, 2009, have a primary loan of less than $729,500 and live in the property, and fulfil certaqin other requirements, you can modify your loan under new obama law. I haven't heard of any restrictions for the state financed loans. I think you should talk with the lender and ask them to clarify why they cannot modify your loan.

Hi

I haven't heard of any restriction for state financed loan either. Dinah, you ought to ask your lender to explain why they will lose money if they refinance the loan under the loan modification laws President Obama has recently passed to boost the real estate market.

do i have to carry mortgage ins. if the loan balance is less then the value of the land?

digdale, whether you need mortgage insurance or not is dependent upon the lender with whom you are doing business.

just so i know what you're referring to...are you asking about insurance that covers the lender in the event of a default, or are you asking about insurance that covers fire, theft, liability, etc. on the property?

there's an enormous difference in the two.

I had a 100000 loan which is now down to 40000 with most of the interest already paid. If I am required to have mortgage
for fire and theif, can I get ins. for just the balance of the loan. its a 15 year mortgage with 3 years left on the loan.

your insurance is going to have to cover full replacement cost, and your insurance agent can coach you on that. in other words, if it costs $125000 to replace your home in the event it was destroyed, that's what you have to have as minimum coverage.

honestly, as a homeowner you don't want to get minimal coverage anyway - if you ever had a disaster you'd be out of luck if you only covered your mortgage balance.