When clients contact us they are usually looking for the lowest monthly payment – or the easiest way to get into the property with the least amount of money tied up in the transaction.
Most prospects only ask one question… “What’s your rate???” In truth, there are MANY other questions to ask!
One of the variables consumers should ask more about it Mortgage Insurance. There are multiple forms of Conventional Mortgage Insurance – running from Lender Paid, to Financed to Monthly. If you are purchasing in NC Conventional lending currrently requires PMI if you have less than 20% equity in the property.
Government loans also carry mortgage insurance. For FHA loans this is called MIP, VA and USDA call these Guaranty Fees. One of the major differences in GOvernment Mortgage Insurance programs and Conventional MI programs is equity investment. With a government loan you mortgage insurance is required- no matter how much money you put into the initial transaction.
Please note that FHA allows MIP to “age off” if at least 5 years of payments are made and there’s a 78% equity position. This is a significant program enhancement agents often forget.
If you are looking for the lowest mortgage payment in Wake County, contact Steve and Eleanor Thorne 919-649-5058. We offer the best mortgage rates available.