Mortgage insurance is a fee charged to mortgagees to finance the lender should your loan go into default. A required part of your conventional loan payment only if your home's value is greater than 80%. So what is the big fuss, well...

Two companies who were the leaders in the industry went bust because they were on the same train that crashed and went off of the tracks when loans were given out to those who just plain were not ready. Credit based only Mortgage Insurance policies were set up to protect the lender. instead they reduced the amount of available loans over 80% because of the large fallout and delinquencies over the last few years. Ultimately "Slowing the business" and making it hard to buy or refinance a home.

NOW the recovery is showing some light. No longer are the policies being written haphazardly, but they are including other variables that make the notes stronger and appealing to the risk assessors out there. A small victory in the eyes of the consumer, but wait there is more.

USDA-Rural Loans now have required mortgage insurance. But the whole idea of living in a less populated area without tons of limitations and guidelines are also feeling the hit of required supplement to payment. One of the ways our government was to increase population in these areas. Guess not.

Did you hear that good old Mortgage Insurance can compete with FHA MI? What? Yep FHA mortgage insurance and upfront fees can be expensive and is not easy to get out of compared to conventional financing. Spouse's debt is included on FHA loans when that are no on the loan as to compared to a conforming loan. Therefore Mortgage insurance opens the possibilities that allow you to shop with emotion, security, and safety or refinance knowing you are using good financial prowess.

In sum, please do the research on any professional entity that you use to finance your home. Make sure the options are fully explained, no assumptions the rules change daily. If your loan to value exceeds 80% then put the pencil to each program out there. There are many ways to save and when you get the chance do not let your heart overrule your pocketbook,

Happy Hunting!

Cheers.