Tuesday, August 2, 2016

Changes in the Riveting World of Mortgage Finance

MIB: Men in Black?
...not, not, MIB, no...

BMI: Body Mass Index?

PMI.  No... that's BMI, Body Mass Index... even more boring than PMI.

IPA: India Pale Ale... yum!

Nope, that's IPA, India Pale Ale.  The most interesting or appealing of the wrong answers but wrong.
PMI.  Private Mortgage Insurance.
C'mon people...

The business of mortgage insurance has been changing--like a baby going through diapers I say. Although most private mortgage insurance companies adhere to a fairly standard pricing model, you might see a difference here and there.

Starting in April 2016 year, most PMI companies made some pretty big changes to mortgage insurance premiums to make mortgage insurance more attractive for some buyers. This change has lowered the monthly payment for some higher credit score consumers. You might have buyers who now qualify for a more expensive home than they would have earlier in the year. Unfortunately, you might also have buyers who see higher premiums.

For the whole story, read Scott Hevel's article here: CCAR.NET

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