Tag Archives: mortgage insurance

Starkey Mortgage Explores the Benefits of Private Mortgage Insurance

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While borrowers never want to part with more money, there is one overriding benefit of Private Mortgage Insurance (PMI). Borrowers with less than a 20 percent down payment for a conventional mortgage loan or those who do not meet the income requirements have an opportunity to be a homeowner by paying for private mortgage insurance.

According to www.pmi-us.com, the benefits of PMI are threefold: the ability to buy a home with a lower down payment, tax-deductible premiums for eligible borrowers and a choice of payment options.

  1. While any homebuyer can appreciate the benefits of PMI, the real advantage is for first-time homebuyers, as it requires a much lower down payment, giving first-time homeowners an opportunity to purchase a home sooner and it allows for loans that exceed the FHA limit.  With a slowly-reenergizing economy following the housing bubble of 2008, PMI helps borrowers enjoy the benefits of home ownership years before they are able to save the 20 percent down payment often required by mortgage lenders.
  2. A new borrower is capable of owning a home while concurrently building equity and enjoying tax deductions on interest and property taxes. Besides the other tax benefits of owning a home, borrower-paid PMI premiums were 100 percent tax-deductible through 2013 for eligible borrowers with adjusted gross incomes of up to $100,000.
  3. Some of Starkey Mortgage’s payment options include:
  • On a monthly premium plan, the mortgage insurance premium is incorporated into your overall loan payment each month, and you pay no upfront premium.
  • On an annual plan, you’ll pay an initial premium at closing and a renewal premium each year that follows.
  • With a single premium plan, the mortgage insurance premium is a one-time charge – paid in full at closing or financed into your loan – so you make no monthly premium payments.

Want to know if Private Mortgage Insurance would be a smart option for your new home purchase? Please contact Starkey Mortgage’s Senior Vice President and Regional Manager for the East Region, Debra Watt (NMLSR #346277, NC License #I-149994) at 704-246-0132 or dwatt@starkeymtg.com.

At Starkey Mortgage, people are key. The mortgage company prides itself on creating loyalty and long-term relationships with its customers and employees. As a full-service mortgage banker, Starkey Mortgage originates, processes, underwrites, closes and funds residential mortgage loans in its name. This “in-house” authority provides increased control over the mortgage process which results in superior customer service. For information on Starkey Mortgage, visit www.starkeymtg.com.

Equal Housing Lender. WR Starkey Mortgage, LLP NMLSR# 2146, 10800 Sikes Place, Suite 110, Charlotte, NC 28277, Branch Phone: 704.849.2125, Branch NMLSR#93518, Branch License #L-112550-102, SC License #MLB-93518.

Essential Information about the Appraisal Process

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Since the 2008 housing crisis, current 30 year mortgage rates are still below average according to Freddie Mac and as a result, many homeowners may save thousands of dollars per year when buying a new home. And while the housing upturn has left buyers hopeful, the National Association of Home Builders (NAHB) explained in an article recently, “NAHB has made it a priority to enact major reforms so that appraisals reflect accurate home values and do not needlessly kill home sales.”

Starkey Mortgage (WR Starkey Mortgage, LLP NMLSR# 2146) has a few helpful tips on what builders can do to assist appraisers with the appraisal process.

  1. Staging and Curb Appeal – First impressions matter in every industry, and new homes set the standard. Prepare for an appraiser with the same attention to detail that you would for prospective buyers: clean, clutter-free spaces and outstanding curb appeal.
  2. Share Information with the Appraiser – Builders should be eager to share all pertinent, objective information with the appraiser including plans and specifications for the property, details and warranties on chosen materials and any comparable, recent sales information. While builders cannot discuss the cost or value of a home, they can provide factual information and documentation.
  3. Be Available During Inspection – Have knowledgeable staff available to answer any appraisers’ questions or requests. However, it is important to remember that the appraisal process is an independent valuation of the property, and any discussion or influence of the value outcome of the report is strictly prohibited.
  4. Document your Communications – Keep detailed records of the communication you have with the appraiser, as well as the information you supply them.

Starkey Mortgage provides in-house processing and underwriting and prides itself on timely closings and competitive rates. Starkey exercises controlled growth and works closely with home buyers and new home builders to give them an assured experience.

For more information on financing your home or for additional tips on preparing for your appraisal, please contact North Carolina’s Senior Vice President and Regional Manager, Debra Watt (NMLSR #346277, NC License #I-149994) at dwatt@starkeymtg.com or call 704-246-0132.

For more information on Starkey Mortgage’s Builder Services, East Region, please contact Amy Slack at aslack@starkeymtg.com, call 404.406.7841 or visit www.starkeybuilderservices.com.

Equal Housing Lender. WR Starkey Mortgage, LLP NMLSR# 2146, 10800 Sikes Place, Suite 110, Charlotte, NC 28277, Branch Phone: 704.849.2125, Branch NMLSR#93518, Branch License #L-112550-102, SC License #MLB-93518.

Why Mortgage Credit Insurance Isn’t the Best for Your Carolina Real Estate

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With continuing news of the foreclosure crisis in the U.S., many (city) homeowners are looking for ways to protect their homes and families if they should lose their jobs, become disabled or pass away. Mortgage credit insurance ads are tempting – the product promises to take care of your mortgage in the case of family crisis. But the Equifax Personal Finance Blog offers a warning in the recent article, “

Avoid the Scam of Mortgage Credit Insurance.”

Insurance expert Linda Rey, author of the article, gives two primary reasons mortgage credit insurance is not a preferred option for most homebuyers. First, it’s very expensive. Other insurance options exist that can help with your mortgage and other expenses if needed.

Second, mortgage credit insurance covers a declining liability. As you pay down your mortgage, your policy covers less and less. But your insurer will continue charging you the same high rate.

What other types of insurance does Rey recommend? Disability and term life insurance. She says they help in several different situations and can cover expenses ranging from housing, to medical to other debt obligations.

Rey warns against using a mortgage lender who tells you that mortgage credit insurance is a requirement for your mortgage. Shop around for a lender who doesn’t use practices such as this, which Rey considers “predatory.” The legitimate insurance you may be required to buy is Private Mortgage Insurance. PMI is required on most mortgage loans that are for more than 80 percent of the home’s value. It is a protection for the lender, not the borrower.

You’ll find more information on different types of insurance at the

Equifax Personal Finance Blog, a favorite source for credit, tax, insurance, retirement and real estate information.