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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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Monthly Premium Borrower Paid Mortgage Insurance (BPMI)

Monthly Premium Borrower Paid Mortgage Insurance (BPMI) is the most common type of PMI Insurance, making up the most widely accepted premium plan in mortgage banking. This is due to their simplicity and ease of use. In fact, many lenders will not even discuss the other options unless you bring them up so being an educated consumer is important. Some advantages to BPMI include:

  • Little money due at closing – The lender usually just requires a 2-3 month payment at closing
  • 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
  • Lower monthly payment upon cancellation – If MI is canceled, the borrower’s monthly mortgage payment is reduced by the monthly premium amount
  • Build equity faster – With no premium financed into the loan amount and no increase to their interest rate, borrowers are able to build equity more quickly than with other premium plans

Who should consider Borrower Paid Mortgage Insurance Monthly Premiums?

Borrowers who want to:

  • Minimize closing costs
  • 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
  • Lock in the lowest interest rate now and a lower monthly payment without refinancing
  • Refinance, but whose appraised value was lower than expected and LTV is slightly above 80%

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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 BPMI?

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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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  • About
  • 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?
  • FAQs
  • Glossary
  • News
  • Blog
  • Get a Custom Rate Quote

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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