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NJ Mortgage Resources

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          Learn more about the NJ mortgage process with our educational resources for homeowners.

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        • What is a Mortgage?A mortgage is simply a lien that is put on a property by a bank or lender of money to assist a consumer to obtain funding in order to purchase that property.
        • Mortgage Pre Approval vs. Pre QualificationAs a technical matter is there are actually 3 levels of “Pre-Approval” available as a lead-up to your mortgage.
        • What Factors Go Into Qualifying for a Mortgage?There are four main categories that a bank will review when they qualify you for mortgage financing, otherwise known as the four pillars of qualifying: Income, Assets, Credit, and Debt.
        • What is PMI Insurance?Private Mortgage Insurance (PMI) is quite simply an insurance policy that protects the mortgage lender in case of default on the mortgage.
        • New Jersey Mortgage Application ChecklistBeing fully prepared leading up to your application can prevent a lot of troubles and tribulations, which can be detrimental and emotionally taxing especially after you’ve gone to contract on your new home.
        • What Is The Minimum Down Payment For a House in NJ?Depending on your circumstances you may be looking to get into a property for the least amount of cash possible.
        • What Are The Three Different Types of Mortgage Lenders?There are 3 different types of lending companies that originate mortgage loans. Banks, Brokers, and Mortgage Bankers.
        • What Determines Mortgage Rates?A variety of factors lend their hand in the determination of where a particular lender will be on rates.
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Borrower Paid Single Premium Mortgage Insurance (SPMI)

Borrower Paid Single Premium Mortgage Insurance (SPMI) is a type of PMI Insurance available in both refundable and nonrefundable options. Single larger premium payments are made at the closing table and advantages include:

  • Lower monthly payment – The absence of a monthly MI payment often provides a lower monthly payment than Monthly or Split Premiums afford
  • Flexibility – The borrowers, seller, builder, or other third party can pay the premium at closing. Lenders may offer a lender credit to cover the cost of the premium. The borrowers can opt to finance the premium into the loan amount. (While base LTV is used to determine MI coverage requirements, financing the premium into the loan amount may increase the total LTV/CLTV.)
  • Cancellable – Borrowers can request cancellation based on investor requirements or under the Homeowners Protection Act of 1998 (HPA); lenders must automatically cancel under HPA terms.
  • Refundable – Borrowers who select refundable single premiums may receive a refund if they cancel MI within the first 5 years of coverage. Even those who select the nonrefundable option may be eligible for a refund if they or their lender cancel MI under the HPA

Who should consider Borrower Paid Single Premium Mortgage Insurance (SPMI)?

Borrowers who want to:

  • Minimize their monthly payment, even if it means paying more at closing or increasing their debt by financing the premium into the loan amount
  • Get the seller or builder to pay the premium – especially in a buyer’s market
  • Qualify for MI cancellation sooner by making extra payments that reduce the mortgage balance ahead of the original amortization schedule or home improvements that result in an increase in the appraised value

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Related Links

  • What is PMI Insurance?
  • Monthly Premium Borrower Paid Mortgage Insurance (BPMI)
  • Borrower Paid Single Premium Mortgage Insurance (SPMI)
  • Borrower Paid Split Premium Mortgage Insurance
  • Lender Paid Mortgage Insurance (LPMI) Single Premiums

Have more questions relating to SPMI

Get customized answers for your situation here:

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NJMortgageResources.com provides homeowners with all the information they need to navigate the complex New Jersey mortgage process and get the best rate possible for their situation. Browse our educational resources and get a free customized rate quote from one of our top NJ mortgage specialists who can also help you with any additional information you may need or questions you may have.

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Resources

  • What is a Mortgage?
  • New Jersey Mortgage Application Checklist
  • Mortgage Pre Approval vs. Pre Qualification
  • What Is The Minimum Down Payment For a House in NJ?
  • What Factors Go Into Qualifying for a Mortgage?
  • What Are The Three Different Types of Mortgage Lenders?
  • What is PMI Insurance?
  • What Determines Mortgage Rates?

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