Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How does the MI coverage fit into the loan?

April 26, 2017coverage fit loan mi

0

Posted

How does the MI coverage fit into the loan?

1 Answer

0

Posted

The lender pays the MI in return for an interest rate premium. This lender-paid mortgage insurance does not therefore need to be dropped during the life of the loan. Secondly, the homeowner realizes a greater tax write off due to paying interest rather than MI.