When buying a home, most of us will take out a mortgage to finance our new purchase. The provider of that mortgage, normally a bank or trust company, may require you take out a mortgage insurance policy to guarantee payment of the mortgage.
There seems to be much confusion when it comes to buying a home. You've got title insurance, escrow, mortgage insurance, and more. Here's a specific look at whether you need mortgage insurance.
As we have discussed before, the popularity of relying on private mortgage insurance to buy a home is gaining popularity. Traditionally mortgage lenders have required home buyers to put anywhere from 10-20% down on a house in order to qualify for a mortgage. The introduction of private mortgage insurance has of course eliminated the necessity for such a large down payment.
Term life insurance is an important basic in your financial planning but what is often more essential is funds to speicifically cover your mortgage. Instead of taking a large chunk of a term life insurance payout to cover any outstanding mortgage, it is better to specifically cover it with mortgage life insurance.
Private mortgage insurance is much more prevalent today than it was just a few decades ago. Unfortunately there is some confusion as to what purpose this type of mortgage insurance serves. Without going into detail, private mortgage insurance helps more people qualify to buy a house. Thus it serves the purpose of making the option of owning a house a reality to more people. Now, to understand just how it works lets take a look at an example.
So you need some life insurance to protect your mortgage should the worst happen to you. I am sure you are aware a mortgage is the largest debt that the majority of us face in our lifetime. If that mortgage was obtained on the basis of a couples combined income then the loss of life from a spouse could bring upon some immense financial strain to the remaining partner. Not to mention that if the widow's income does not stack up they will be unable to remortgage or possibly maintain the existing mortgage payment.
If you have a home, then you need to protect its value. If you’re the breadwinner, then get some life insurance. Mortgage life insurance pays off the mortgage when the insure dies.
Mortgage life insurance can be a smart decision for a variety of policyholders. Learn about the benefits of mortgage term life insurance and the financial returns it can offer.
Mortgage Life insurance pays for your mortgage and provides for your family's well-being in the event of death
This article discuses two mortgage terms that every one looking to find a mortgage should understand, amortization and private mortgage insurance (PMI).
Few people know what mortgage insurance is and what it protects you from, become one of them by reading this article!
What is the difference between term insurance and mortgage insurance?
Two questions frequently asked, are "What is Lenders Mortgage Insurance?" and "Will I need it when Refinancing a Home?" In this article I will explain what Lenders Mortgage Insurance is, how it works and influences you when Home Refinancing.
Mortgage Protection Insurance ensures that your family gets to keep their house in the event of a disability or death.
Are you thinking of getting a mortgage protection policy? Do you know what private mortgage insurance is used for? To protect your home and finances there are many policies you can chose from.