A $1,854,000 mortgage insurance policy is now up for grabs after the National Association of Realtors reported that the cost of the policy has more than doubled since the beginning of the year.
The mortgage insurance rate on a three-year fixed-rate loan is now $1 (for $1 million) and a six-month fixed-ratio loan is $2,400 (for the equivalent of $4,200).
In the first quarter of the new year, the annual rate was $1 in January, $1 for February and $1 a month thereafter.
The rate is now about $1 more than it was in the first three months of the current year.
The increase came despite the fact that the average interest rate on three- and six-year mortgages is still hovering around 3.8% and 4.2%, respectively.
The policy offers protection for the interest and principal on a fixed-price loan at a $3,000 monthly payment.
This will be a huge hit to the average homeowner who will likely pay a premium of $1 per month for the insurance.
The insurance comes at a premium that will not only hurt the homeowner, but will likely reduce the quality of the loan.
The median home price in the United States is $400,000, according to the Federal Reserve Bank of New York, and the average loan amount is about $500,000.
The median loan is about 6.4% of the median income.
If you or someone you know needs help with a mortgage, the National Mortgage Association has a free telephone helpline that will answer your questions.