NLIC.org

Lynn Said:

What is a 75/25 mortgage and how does it work? Would I be making 2 mortgage payments a month?

We Answered:

It's two loans. It's a first loan for 75% LTV, with a subordinate second of 25% LTV. In many cases, it's cheaper to do that than pay MI. But if LPMI is available, it's usually cheaper to do that. It usually depends on your Fannie findings, and really more things than I can go into and keep your interest. Anyway, if the same lender funds both loans, they'll probably only send you one bill, but a bill that is itemized to show that you're paying on two loans. The rate for the first one will be a conforming rate, but the second will be about 8-9%. If this is a purchase, watch your prepay penalties, especially if you go into the house with equity, because if you have sufficient equity going in, you can refinance after 6 months using the appraised value for LTV, not the purchase price, and then get one loan with no MI. You'd have to refi for 80% or less, though.

Pamela Said:

Poll: What is your mortgage payment and Insurance cost for your 2+ bedroom / 2 bath HOUSE and what region?

We Answered:

We live in Lawton Oklahoma and we have a 1600sqft 3 bedroom, 2 full bath house with an attached 2 car garage, large privacy fenced in yard and covered patio. Our mortgage payment is 644 a month, 80 for taxes and 80 for insurance for a total of 804 a month. We just purchased our house. Our interest rate is 5.5 fixed

Kimberly Said:

Need answers about mortgage disability insurance in Canada?

We Answered:

Technically, they should pay everything since the time of the injury, however, if the insurance was bought through the lender or bank, then good luck (bank insurances cover mortgage payments directly meaning you don't actually physically get any money, it just pays your mortgage). Insurances bought through lenders are very shady and you'll be luck if they pay out at all.

Go through a liscensed insurance broker for all your insurances. Going to a bank for insurance makes about as much sense as going to a chef to fix your car.

Bertha Said:

Forced to Pay PMI Mortgage Insurance. Was this a Scam? Where did all that money go?

We Answered:

Yes, I'm with you on this one!

What a great point. How much lower would our payments have been without it?

Manuel Said:

How will an increase in homeowners insurance impact my mortgage payment?

We Answered:

Yes. If you have a reserve account set uyp for the payment of insurance and property taxes the lender will either recalculate the amount you will be required to pay monthly in order to ensure that there are sufficient funds in the account to pay the bill when it becomes due or they will pay it and increase your payment next year enough to pay for the increased cost and any shortage they incurred in payment of the premium.