Mortgage insurance is an insurance policy that guarantees the bank or other financial lender that they will get back the money if you should default on the loan. What happens if you become disabled or you die before the mortgage on your home is paid in full? This insurance is not the same thing as mortgage life insurance and it won’t pay off the loan in the event of your death before the loan is paid in full. It is a policy that protects the lender, because, after all it is the lender’s money that is at risk. There are many benefits to getting mortgage insurance. Most lenders require a 10 % or 20% down payment on the amount of money they wish to borrow. When you are willing to purchase the insurance on the loan, this tells the lender you are willing to make a commitment to paying off the money that you owe. Therefore the lenders may only request a 5% down payment making it much easier for you to save up the money you need to buy a home.
Some of the types of mortgage insurance you can have include the following:
Mortgage life insurance is also important for homeowners or potential homeowners. Anyone who has a mortgage should have mortgage life insurance. This is insurance that covers the amount of the mortgage if you should happen to die before the mortgage is paid in full. The insurance company that holds the policy will pay off the unpaid balance of the mortgage so that your loved ones won’t have to worry about coming up with the monthly payments when they no longer have your salary to rely on.
This site aims to provide information on different areas of mortgage insurance, enabling you to make a more informed decision with regards to what sort of insurance you should get to best suit your needs and to provide protection. You can read articles such as:
What is mortgage insurance? If you are applying for a mortgage, most lenders will require you to have mortgage insurance. This site offers details on what this insurance is and why you need it.
Types of mortgage insurance: There are several types of mortgage insurance policies and you should not confuse them with mortgage life insurance policies. This article discusses the different types of mortgage insurance available.
Private mortgage insurance (PMI): Private mortgage insurance, also called PMI, is an insurance policy a home buyer takes out to protect the lender in the event that the borrower defaults and doesn’t pay back the loan. This article explains more about this type of cover and its benefits.
Benefits of private mortgage insurance: There are a number of benefits to taking out private mortgage insurance, and this article takes a more indepth look at these benefits.
PMI cancellation: When you have PMI, private mortgage insurance, you will not be able to cancel your policy until your have repaid more than 20% of the original mortgage amount. This article discusses the restriction and terms attached to PMI with regards to canceling the policy.
Mortgage life insurance: Anyone who has a mortgage should have mortgage life insurance. This is insurance that covers the amount of the mortgage if you should happen to die before the mortgage is paid in full. This article looks at this type of cover and its benefits.
Mortgage term life insurance: Mortgage term life insurance is a cheaper alternative than mortgage insurance. This article explains what this type of cover is, how it differs from standard insurance, and what the benefits of term life cover are.
Mortgage insurance quote: When you are looking for mortgage insurance, you should never accept any policy on blind faith and think you are getting the best deal, even if it is through the bank where you have your mortgage. This article looks at getting mortgage insurance quotes and how to get the best deal.
Mortgage insurance FAQ: This is a quick and convenient run-down of some commonly asked mortgage insurance related questions along with the answers in a simple to read format.
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