Which situations require mortgage insurance?  Why?  What are the borrower’s options with  mortgage insurance?  This course explains why mortgage insurance exists, how it is calculated, and how to help your borrower select the best option.

Prerequisites

• Calculator that can add, subtract, multiply and divide
• How to calculate loan-to-value
• Type of mortgages – conventional, FHA, USDA, VA
• Required down payment for conventional, FHA, USDA, and VA

Objectives

• Understand history of mortgage insurance
• Identify loans that require mortgage insurance
• Is mortgage insurance a way for lenders to make a profit?
• When upfront mortgage insurance is required
• How to calculate upfront mortgage insurance or funding fee
• When monthly mortgage insurance is required
• How to calculate monthly mortgage insurance
• Types of mortgage insurance available
• Which is better – refundable or nonrefundable?
• How to present mortgage insurance options to borrowers

Case Studies / Quiz
System Requirements

• The skills and/or materials you need to complete this course are:
  • Calculator that can add, subtract, multiply, divide
  • Computer with speakers – audio instruction is included