For further details on gifts please call or e-mail us with any specific questions. Mortgage insurance can influence not only the borrower's house payment but also the ability to qualify. Many borrowers confuse mortgage insurance with mortgage life insurance which pays off the mortgage if the borrower dies. Also the first years of a mortgage are the years of greatest risk for the lender. If the loan is a higher risk, such as an ARM or any loan with increasing payments, mortgage insurance is more expensive.
Mortgage insurance is more expensive in the first year.
Mortgage Insurance protects the lender against loss if there is a default and foreclosure on the mortgage. That creates a very high risk for the lender. Most conventional lenders require that a condominium be Fannie Mae approved. The form that tells a lender that a condominium is Fannie Mae approved is called a 1028 form. Paone Mortgage specializes in lending on Fannie Mae and non Fannie Mae approved condominiums.