Home insurance costs averaging nearly 10% of typical mortgage payments
Educational
Scotsman Guide reports that home insurance costs have reached a point where they now average nearly 10% of typical mortgage payments, a burden that has been building even as the pace of increases has slowed in recent quarters. The ratio itself is what stands out: for every dollar going toward principal and interest, another dime is heading to the insurer, and that is before taxes, maintenance, and vacancy reserves are factored in. The story does not suggest relief is imminent.
For investors and owner-occupants alike, that compression in cash flow changes the math on what a property can actually carry. loantrust.ai works in that revised math every day, structuring financing around the realities of the asset rather than an idealized spreadsheet. A rental property that qualifies on DSCR, a fix-and-flip where carrying costs must be contained, a self-employed borrower using bank statements to document capacity, or a bridge loan timed to a refinance exit — each is packaged by one licensed MLO who handles the file start to finish, not routed through a call center queue. The point is to match the financing to the actual cost structure the owner will face, insurance included.
When an operating expense line grows this large this fast, the margin for a mismatched loan product shrinks to nothing. The investors and builders loantrust.ai serves are already underwriting with that discipline; the financing should reflect it.
Source: Scotsman Guide, “Home insurance costs averaging nearly 10% of typical mortgage payments”. Read the original →
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Hans Michel, Mortgage Loan Originator, NMLS #2857209 · LoanTrust is a dba of RentAssure Inc. · Licensed in Georgia · NMLSConsumerAccess.org · Equal Housing Opportunity. Nothing on this site is a commitment to lend — all loans subject to underwriting and approval. DSCR, fix & flip, bridge, new construction, multifamily, and bank-statement programs are business-purpose loans for investment properties only.