What is the difference between Insured, Insurable, & Uninsured?

Insured

• Refers to when your down payment is less than 20%.
• The property purchase price must be less than $1,000,000.
• Must qualify at a 25-year amortization.
• Owner occupied or 2nd home purchases only.
• Can’t be a rental property.

Important to note on all insured mortgages with less than 20%, mortgage loan insurance is required.

Because your mortgage loan insurance premium is protecting the lender, you will qualify for the markets lowest interest rate.

Insurable

• Your down payment will be greater than 20%.
• The property purchase price must be less than $1,000,000.
• Can’t be a rental property.

What makes an Insured mortgage different than an insurable mortgage is that you are now putting 20% or more down. In this case, the lender will now pay for the mortgage loan insurance. In this case, your interest rate will be slightly higher than an insured product, but lower than an uninsured mortgage.

Uninsured

• Your down payment will be greater than 20%.
• The property purchase price can be over $1,000,000.
• You can extend your 25-year amortization to 30-years.
• Can be a rental property.

Because the lender pays for private mortgage loan insurance, uninsured mortgages result in a slightly higher rate.