Mortgage Default Insurance Premiums Increasing

Effective March 17th it is going to cost a little more to get a mortgage if you are putting less than 20% down payment for the purchase of a house.  As lenders are being pro-active, applications under old premiums must be in by the end of the day on the 15th of March.  Below is a table of the old and the new premiums. 

Loan-to-Value Ratio	Standard Premium (Current)	Standard Premium (Effective March 17, 2017)
Up to and including 65%	0.60%	0.60%
Up to and including 75%	0.75%	1.70%
Up to and including 80%	1.25%	2.40%
Up to and including 85%	1.80%	2.80%
Up to and including 90%	2.40%	3.10%
Up to and including 95%	3.60%	4.00%
90.01% to 95% - Non-Traditional Down Payment	3.85%	4.50%

Mortgage loan insurance helps protect lenders against mortgage default and enables consumers to purchase homes with a minimum down payment of 5% with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price.

To calculate what your mortgage default would cost please go to https://www.shawnmooney.com/mortgage-default-insurance

Shawn Mooney | Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com