If you have purchased a home with less than 20% down payment, your current mortgage likely has a form of Mortgage Insurance. Mortgage Insurance is a type of insurance that protects the Lender in case you default on your loan. Most mortgage insurance is due as a Monthly Premium, but some is provided as a Single Premium, and may have resulted in a higher mortgage rate.
Most home values in Colorado and Arizona have experienced significant price gains, sending consumers loan-to-values much lower.
When your Loan-to-Value drops, you may be able to refinance to remove Mortgage Insurance resulting in a lower monthly payment. Or if you choose, you may be able to refinance to a shortened loan term for a similar payment. Paying off your mortgage years earlier will result in thousands saved in Interest Payments over the life of your loan.
If you are currently paying Mortgage Insurance, give Ideal Home Loans a call and we can discuss all of your options to potentially start saving you money today!