The number of new residential mortgage insurance applications actually increased in June from May’s totals, yet it was still the second smallest in the past seven months.

With so many financial obligations that must be met by the average person, it is not surprising that many fail to meet one or more of these obligations.  If you fail to pay your mortgage payment, there can be serious consequences not the least of which is potentially losing your house.  What are some reasons? 

The 20% down payment needed to purchase a home can be very difficult for some first time buyers to come up with. Quite often, it will be necessary for the homebuyers to get some type of private mortgage insurance in order to buy their house. Private mortgage insurance can be of great assistance in bypassing this first obstacle in your transaction, but it can create others. Your house payments will be higher each month and you won’t be able to deduct the difference when you file your taxes. While most homebuyers would like to avoid these problems and the 20% down payment, how do they avoid using private mortgage insurance?

Many homebuyers have rather strong views on home mortgage insurance. Some want no part of it, and think it is grossly unfair that they would be required to take out such a policy simply because the down payment on the home they wanted to acquire was not as large as what the lender required. This also makes the interest rate that they have to pay higher than normal.