Benefits of Mortgage Insurance
Mortgage Insurance from Genworth provides a win-win solution for everyone. While it protects investors from potential loss, it also provides important benefits for homebuyers, lenders and real estate agents.
First-time borrowers can get into a home sooner. Existing borrowers carrying adjustable rate mortgages can refinance to avoid rising payments. And, lenders and real estate agents can establish long-term relationships with repeat borrowers, plus gain referrals for new customers.
Sooner.Safer.Smarter. Homeownership (pdf | 250kb)
Safety & Security
With mortgage insurance from Genworth, borrowers have added peace of mind because many loans insured by Genworth have built-in features such as:
Homeowner Assistance: Mortgage Insurance from Genworth helps homeowners during times of financial difficulty. Representatives work with lenders and directly with borrowers to find solutions to keep families in their homes.
Job Loss Protection: Providing a safety net for borrowers in the event of job loss, Genworth purchases this additional insurance that can make a homeowner's mortgage payment if they become involuntarily unemployed. It's available on many of our MI products, at no additional charge.
Counseling Saver: Borrowers who take the time to become smarter homebuyers—eight hours of pre-purchase education, either one-on-one or in a classroom—can receive a discount on their mortgage insurance premiums.
Job Loss Protection FAQs (pdf | 58kb)
Lower Overall Expenses
Mortgage insurance puts borrowers on an affordable path from the start and helps reduce their expenses over the life of the loan:
Competitive Monthly Payments: A loan with mortgage insurance is often cheaper than a combo loan and is competitive with other alternatives. In a few short years, monthly mortgage insurance can also be canceled, reducing payments even further, while a second loan must be paid in full.
Tax Deductibility: Now, mortgage insurance premiums are tax deductible for many borrowers. By taking the deduction on their federal income taxes, borrowers may save $200-$400 each year.
Tax Deductibility FAQs (pdf | 54kb)
Cancellation: Because mortgage insurance is temporary insurance, a buyer may be able to cancel it after building sufficient equity in the home. According to Mortgage Insurance Companies of America (MICA), 90 percent of borrowers cancel their mortgage insurance within 60 months.
MI Cancellation Summary (pdf | 423kb)
Convenience and Simplicity
Borrowers have less to worry about and easier options to choose from when they select a loan with mortgage insurance:
One Loan versus Two: Mortgage insurance provides the simplicity of a single loan. In addition to rising interest rates, second mortgages can create other drawbacks that take time: two underwrites, two filings, dual processes, and two recording fees. Borrowers must also make two loan payments, rather than one.
Flexible Payment Options: Borrowers can choose from several types of mortgage insurance payment options, each offering its own set of flexible terms and payment schedules.
