All About Mortgage Insurance: 2009

Monday, December 21, 2009

Update Dec. 21 - 2009 All About "Mortgage Insurance" Information By Insurance Experts

Mortgage insurance is defined as a decreasing term life insurance depending to the amortization of the mortgage period while the premium remains the same over that period. You can purchase the mortgage insurance from the bank, trust or life insurance companies.
1. If you purchase your mortgage insurance from the bank or trust
a) No medical exam is required
b) The beneficiary of the policy is the bank or trust
2. if you purchase your mortgage insurance from the life insurance companies
a) medical exam is required for any sum insured over $100,000
b) The beneficiary of the policy is designated by you ( Kyle J. Norton)

All About Private Mortgage Insurance - PMI

By Ron Beauchamp

Making mortgage loans can be a risky business. As with all businesses, lenders are looking for assurance that their investments will be protected. However, it's not always easy to predict which borrowers will default on their mortgages or eventually go into foreclosure. Because of this, lenders require that the borrower pay for Private Mortgage Insurance under certain circumstances.

What Does PMI Do? Private Mortgage Insurance protects lenders in the event that the borrower does not repay the loan. Instead of the lender losing the money, the insurance company will step in and cover the losses. Typically, PMI only covers the difference between the home's value and the remaining balance on the mortgage, as the lender can recoup the remainder through sale of the home.

Who Needs PMI? Typically, lenders will require PMI on loans with a loan-to-value of over 80%. In plain english, if the home is worth $100,000 and the loan is for more than $80,000, the lender will require private mortgage insurance. PMI can be canceled when the borrower no longer owes more than 80% of the home's value.

Why Offer It? It would be much safer for lenders to only accept borrowers that can make a 20% or more down payment, but that would significantly lower the number of individuals that are able to purchase a home. Instead, PMI protects the lenders just as if the borrow had made the full 20% down payment, of course, it is an additional expense to the borrower.

How Much Does It Cost? Although the cost can vary depending on the amount of coverage provided (1-20% of the home's value) and the type of loan it covers, it is typically around $35-$70 per month on a $100,000 mortgage.

Find a great Cupertino Mortgage Loan at LoanPickr.com and get a quote on a California Mortgage Loan.

Article Source: http://EzineArticles.com/?expert=Ron_Beauchamp

Mortgage Life Insurance

By Morgan Halls

Mortgage life insurance is a valuable way to protect your family and provide for them in the unfortunate case you should pass away suddenly and unexpectedly. This type of life insurance is slightly different than traditional life insurance for the single reason being that in the event of your death, your family would not be directly paid any money from this policy. Instead, if you were to pass away, the mortgage life insurance company would send a direct payment to your bank that satisfies any additional money owed on your property. This naturally leads to a good number of questions that must be answered before full understanding of this type of coverage can be gained.

How Does Mortgage Life Insurance Work?

This type of policy works by having your insurance company directly pay off the balance of your mortgage in the event of you passing away. Unlike traditional life insurance, your family is not awarded any direct funds, however, once the mortgage on any property is paid off by the insurance company the beneficiary of that property will inherent it with full ownership; just for the purposes of clarification, once the mortgage insurance company pays off the mortgage on any given property, they do not own that property at all, instead, full ownership is given to the individual who that property was left to in the will or through other arrangements. This is a substantial type of policy as it essentially ensures whoever your property is passed along to will assume ownership of that property without having to make payments on any sort of mortgage or loan.

The Best Mortgage Life Insurance Policy

The best policy of this type is one that comes from a legitimate company that can be found by browsing through your favorite Internet search engine or even your phone book. Typically you are eligible to apply for this type of policy at any time during your time as a home owner but it may be offered to you in some way, shape or form at your closing. One of the most helpful tips to remember is that if at any point you should refinance, take another mortgage out or switch your mortgage to another lender, you must reapply for an entirely new mortgage insurance policy as they are only able to insure existing mortgage policies. To further go into detail, this type of mortgage insurance applies to individual mortgages only and must be reapplied for if you change your mortgage at any given time. Getting mortgage life insurance quotes is the gateway for getting started on this coverage and is a fairly easy process; if you are an existing home owner or strongly considering purchasing a new home, this is one type of long term financial planning you do not want to avoid dealing with or taking into consideration as it can by defining way to provide for your family should tragedy strike.

It can be difficult when it comes to deciding on the best ways to safeguard your home and plan for a sound future. Mortgage Life Insurance is one of the best ways to construct a solid long term financial plan for your investments as well as your family.

Gaining a good knowledge about Mortgage Life Insurance is one of the most recommended ways to tackle the problem and is the first step towards finding the policy that is right for you.

Article Source: http://EzineArticles.com/?expert=Morgan_Halls

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Tuesday, December 1, 2009

Update Dec. 01 - 2009 All About "Mortgage Insurance" Information By Insurance Experts

Some Facts About Mortgage Insurance

By Frank Rodriguez

Too many home purchasers look at their mortgage insurance as either something they have to get or don't need. As a result, many have paid a high price for their lack of understanding. When hit by the recent economic crisis, they were unprepared. Those who were prepared were glad they were.

Mortgage insurance (MI) is sometimes referred to as Lenders Mortgage Insurance because it is part of the home loan package and because it is designed for the protection of the lender should the borrower default on their loan. Private Mortgage Insurance has slightly different connotations, but is also synonymous with MI.

You, the borrower, is the one who pays for your MI. Often you cannot have a home loan approved unless you take out this insurance as part of your package. Usually this is the case if you are unable to pay as much as twenty percent of the price of your home as a down payment.

It is all too common for home loan applicants to settle for the minimum Lender's Mortgage Insurance. So grateful to have been offered a loan at all, they may not question this insurance and see if something that protects them in case of a loss income is available as well. There is such a thing and it is called Job Loss Protection

The most likely reason you will have for being unable to repay your home loan is the loss of your job, especially in these tough economic times when you cannot really trust anything anymore.

You may think that job loss homeowners insurance is prohibitively expensive and decide to skip it altogether or put it off until later. If you make it a point to look into it, you will find that some home insurance companies actually throw it in for free as part of their loan package.

Yes, it sounds like a crazy thing for an insurance company to do, but they want you to take out their policy and that is one of the carrots they will dangle in front of you. Your lending institution, on the other hand, may have hidden that fact from you because they assumed that you would take their offer and not explore all the insurance opportunities at your disposal.

Because one part of your insurance is free doesn't mean that it all is free, of course. You need to assess the risks involved and balance them against the costs and make a practical decision. If you cannot afford the most comprehensive coverage, you may have to settle for less. It is more likely, though, that when you shop around, you will come across a deal that is both affordable and all-inclusive.

After you have made the decision about whether or not to get a policy that includes job loss protection, check to see just how much protection it offers. Is there a long period of time you have to wait before your first installment arrives? Is the period of cover worth the extra investment, if there is one? Policies differ, so be sure to read the fine print.

These few facts about mortgage insurance should get you started on the right road to the best deals. Don't settle for your first or second offer. Wait until you find the perfect insurance policy for you.

Though mortgage insurance is not highly praised it actually plays a valuable role in getting people in homes that they would not otherwise be able to buy. It should not be though of as homeowners insurance, however, as this needs to be purchased separately.

Article Source: http://EzineArticles.com/?expert=Frank_Rodriguez

Lenders Mortgage Insurance For Lower Deposits of 5 Percent of the Property Value

By Ignacio A. Sapalo Jr.

In these hard times, not all of us have the capability of saving up 20% to deposit in order to be able to purchase our dream home. This means that it would be very difficult to get a loan from a bank as they often require a 20% deposit before releasing any funds in the first place.

So what is a prospective borrower to do in such a case? Does the borrower necessarily have to save up even more in order to be able to make the purchase? Saving while all the property prices are going up?

In order to avoid such a situation there is another possible way to purchase your dream home without needing to save up 20% of the value of the property. This is by means of Lenders Mortgage Insurance or LMI. With LMI you can save up just 5% of the value of the property you would like to purchase. When you deposit the 5%, you are allowed to take a loan, and pay a fee to the lender to cover the LMI. The fee will depend on the amount borrowed, and the amount you have deposited. The LMI fee may be paid up front, or made in addition to the loan.

Although LMI is not mandatory, it becomes mandatory when the lenders require it. The common practice is to require LMI if you are borrowing more than 80% of the property value. This is in order to protect the lender from possible defaults in repayments. If there is a default in the payment then the property is sold, and if the lender still suffers a loss, then insurance company makes up for the loss.

At first glance this type of insurance protects the lender in the event of default, there are also a number of benefits to first time buyers. The obvious benefits are that it enables these buyers to purchase a home sooner with a smaller deposit. Where prices of homes keep on rising, it is better to get into the market and gain a foothold early, rather than just saving but never catching up with the rate of the rise in the prices of property and residential homes.

To get an accurate idea of how much the insurance will cost you, an LMI calculator is a great way to determine the price of insurance.

Article Source: http://EzineArticles.com/?expert=Ignacio_A._Sapalo_Jr.

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Saturday, November 14, 2009

Update Nov, 14 - 2009 All About "Mortgage Insurance" Information By Insurance Experts

Is it Wise to Cancel Mortgage Insurance?

By Griff Hanning

Some people do not even know that they have mortgage insurance. They bought a house, they pay a mortgage bill every month, and that is all they really know. This is because it is usually tacked on to the mortgage monthly payments. Once you understand what it is, you may want to consider getting rid of it.

Mortgage insurance exists to protect the borrower and/or the lender in case the borrower defaults on the loan payments. According to Wikipedia, lenders usually make it required to have if the borrower has paid less than 20% of the amount borrowed. This is usually private mortgage insurance, but it could also be public mortgage insurance, depending on the insurer.

Your insurance hardly ever covers the entire loan amount. It is often just a percentage of the loan amount. In fact, it is usually a very low percentage. It is definitely a good idea (not to mention a requirement) to have it at the beginning of your loan, but once you have over 20% down or whatever the cut-off was with your insurer, it may be worth getting rid of.

For instance, if you take out a mortgage loan on a house for $200,000 and pay $45 per month for the insurance that will only cover $35,000 if you default on the payments, this will be helpful, but still put you in a bind if something happens. It is usually recommended that after you have paid for more than 20% of the mortgage, you should cancel your private mortgage insurance policy and reallocate that $540 per year towards something else like investments or life insurance that will help protect you for your future by giving your greater gains.

It is important to re-examine your finances on a yearly basis and determine the pros and cons of private mortgage insurance once you have the freedom to get rid of it. Nobody wants to pay for something they do not need.

For other money saving and money management tips check out http://financialsecrets101.com.

Article Source: http://EzineArticles.com/?expert=Griff_Hanning

Do You Need Mortgage Life Insurance?

By Tom Mullaly

Mortgage insurance sounds like something that anyone would be interested in having. To insure one of the largest financial commitments that you will probably ever make must be a good idea after all, right?

Did you know that there might be better ways to ensure that your family's living arrangements are taken care of, in the event that you pass away? One danger with mortgage insurance is that, knowing that the mortgage on the family home will be paid, you might underestimate the amount of insurance that you need for the rest of their living expenses, or things like post-secondary education. In practice, a better strategy is to buy enough term or whole life insurance to cover all the costs that you want to cover. The mortgage may not even be the most relevant expense that your family will have: although it is not pleasant to think about, they may even opt to sell the house. Whether they would or not, ask yourself who actually benefits from the mortgage being paid off? The bank that holds your mortgage benefits, and you are protecting their financial interest. Might any mortgage premium amount you pay each month be better put toward more term or whole life coverage, meant specifically for your family? Greater flexibility, for the same money, would be what you are choosing.

If you decide to approach your family's expenses with this holistic approach, what policy might be best, out of the many available? Obviously each situation is different, and you really must consult with more than one unbiased source of information (i.e. someone not actively engaged in selling you insurance!) but one policy to consider is a return of premium term life policy. The policy can be purchased for a term similar to that of your mortgage, say 15-30 years. If you are still alive when your policy ends, you get all your premiums back, tax-free. Statistics say that it is likely that this will happen, by the way.

Now, if you do still determine that mortgage insurance is what you want, there are a couple of reasons why you should NOT buy it from the bank from which you take out your mortgage. First, you will probably be offered mortgage insurance with a constant monthly premium to cover an mortgage principal amount that is declining over time. That is definitely a bad idea in the later years of your coverage.

Secondly, in the event that you take out a new mortgage or renew your present mortgage with a different bank, you will have to reapply for mortgage insurance, and since you will be older, the new terms may be much less favorable. A 'portable' term policy covers you continuously in either event, and this portability is a great feature.

All in all, think twice about accepting the 'convenience' aspect of the mortgage insurance that your lender will very probably offer you. It is probably not the best type of insurance to pay premiums into each month, and even if you decide that it is right for you, your mortgage lender is almost certainly not the financial institution from which to buy it.

Educate yourself on life insurance policies before you take out mortgage life insurance.

Article Source: http://EzineArticles.com/?expert=Tom_Mullaly

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Monday, October 26, 2009

Update Oct. 27, 2009 All About "Mortgage Insurance" Information By Insurance Experts

Mortgage Payment Protection Insurance - Your Safer Cover!

By Gyan K

What happens in case you are suddenly made redundant due to a loss of job or illness? You may be unable to make your mortgage payments, pay off credit card bills, grocery bills and find it difficult to lead a normal life. You may be unable to meet your basic financial needs. Are you stressed out? Don't worry, you have a protective cover known as mortgage payment insurance.

Your basic insurance cover for income protection will cover you for:

• Mortgage

• Household bills

• Rent

• Credit card payments

• Loan payments

With a mortgage payment protection you will no more be in a dicey situation if you were to lose your job. Due to recession, sudden loss of job has become a common occurrence and there is no security of job. It is evident that more and more people have started to enrol for income protection insurance. Safeguard your monthly income flow, be it accident, illness or a sudden loss of job. Your mortgage payments, rental bills, loan payments, house hold bills, credit card payments, grocery bills etc will be covered by income protection insurance.

Some loan lenders will offer a combination of loan and loan protection in one. This helps a loan borrower to stay relaxed in case of a financial crisis. If he is unable to pay back the loan amount on time due to some unavoidable circumstances, his loan protection insurance will take care of the loan payments. Such income protection if taken on time it will not only protect your monthly payments such as loan payments, credit card bills etc but also safeguard your collateral too. You don't have to lose your home for non payment of secured loans, loan protection cover will do the needful.

To avoid after effects of losing a job one has to make sure he has a protective insurance cover in place. If you are a sole bread winner of your house and you lose a job, think of your dependents at home. By having a protective cover you are safeguarding your dependent's lives too. You need not lose your home which is offered as a security.

You can find discounts on your insurance policy if you reach out to your existing insurance provider. He may be willing to add another insurance cover for a lesser insurance premium. With an uncertain job market, redundancy is bound to occur. Take a wise move and protect your mortgage payments!

Get all your free tips related to Mortgage Payment Protection Insurance from:

Mortgage Payment Protection Insurance

Guide to Payment Protection Policy:
Payment Protection Policy

Article Source: http://EzineArticles.com/?expert=Gyan_K

The Easy Mortgage For Bad Credit Solution

By Ryan J. Taylor

When you need to obtain a mortgage for bad credit, there are a couple options you have to choose from. Before you commit to anything, it is crucial that you know your options and spend some time thinking about this important decision. Whatever you decide is something you may be stuck facing and paying off for the next 30 years, so do not take this decision lightly.

Your mortgage for bad credit options are basically the following:

1. Search for and try to find the best offer with your current credit situation
2. Focus on credit restoration to qualify for preferred treatment

There are a number of companies and organizations that will approve you for a home loan no matter what your credit score, but that comes with major consequences. You're likely to pay outrageous fees and the interest you'll pay on the loan will be two to three times the average rate.

As a result, not only will it cost you hundreds or even thousands of dollars more to live in your home every month, but by the time you pay off your mortgage it could cost you hundreds of thousands of dollars more. That's because each month you pay your mortgage, more money is sent to the bank to pay interest than to actually owning your home. You're simply paying a fee.

Whether you need a mortgage for bad credit to purchase a new home, refinance your current home, or buy a second home, you'll end up paying more with these plans - and not just in mortgage payments. Because of your bad credit, your closing costs could be higher and you may end up paying private mortgage insurance (PMI), which is nothing more than a fee because of your bad credit score.

This can all be entirely eliminated by simply planning 30 - 90 days before you purchase your home. By putting a little effort in restoring your credit, you can erase any worries about getting approved for a mortgage. In doing so you'll save thousands of dollars in the process and reduce your closing costs.

Take the first and easiest step in repairing your credit right now. Get your credit fix in less than 45 seconds and watch your future start to change today. Discover how to rebuild credit

Article Source: http://EzineArticles.com/?expert=Ryan_J._Taylor

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Thursday, October 8, 2009

Update Oct. 08, 2009 All About Mortgage Insurance Information By Insurance Experts

Mortgage Life Insurance Protection - Is it Worth It?
By John Preest

It is a common fact that the odds of developing a critical illness are moderately great. The statistics show that there is a 1 in 6 possibility for men and 1 in 5 possibility for women that an infirmity will impede them from working. At present, mortgage insurance life cover will not change the actuality that you can contract an sickness, yet, it can simply take away the extra tribulations, which are likely to arise such as finance repayments etc.

The bulk of populace will have a mortgage insurance protection policy, other people will maintain they have the top; most comprehensive and expensive policy there is available from the market place, with full terminal sickness protection incorporated. That is all good and fine, but none of this will consist of a critical illness problem. This is where most people fail, as they simply do not distinguish the variation. A incurable illness document is when your GP lets you appreciate that you have a ceiling of 12 months to survive, whilst a critical illness certificate can last years devoid of a prediction on your life expectancy such as loss of sight, deafness or heart etc.

However, its not only the mystification why lots of people don't own a critical ill certificate, further reasons consist of the cost of critical illness life policy premiums. Yes it is more costly, but it's a not rocket science that there is a a good deal advanced possibility of you catching an sickness than dying ahead of retirement age. On the other hand, your critical illness policy and life insurance contracts will work out cheaper, in actuality now and then it can be that much cheaper, the life cover portion is almost totally free.

So to conclude, don't bother leaving out any particulars and don't forget to read the assurance book stipulations and circumstances. It is not such a hard procedure to do, and im certain loads of people regret not doing it.

J P Financial are a mortgage insurance protection brokers based in the UK. Providing mortgage insurance and critical illness life cover quotes

Article Source: http://EzineArticles.com/?expert=John_Preest

Mortgage Insurance Explained
By Jason Hulott Platinum Quality Author

Getting a mortgage is bad enough – what with terms like fixed rate, discount, variable etc – so mention mortgage insurance and naturally your eyes will start to glaze over.

However, mortgage insurance is an extremely important insurance to have – in fact, it can the difference between keeping a roof over your head or ending up having your home repossessed.

If you recently took out a mortgage, you may remember the lender asking you whether you wanted mortgage payment protection insurance. It probably sounded expensive and unnecessary. And while, in some cases, there are companies who like to charge you too much for the product, it doesn’t have to be that way.

As for it being unnecessary – get the right policy and at the right price and it will be an invaluable safety net for you. So, what is mortgage insurance? It is a product whereby should you be unable to meet your mortgage repayments due to being made involuntarily redundant or due to being able to work because of sickness or maybe an accident – then it will cover your mortgage repayments.

Your mortgage repayments (and sometimes other mortgage related outgoings too) will be covered for up to a set period of time (typically 12 months but this can vary from provider to provider) to give you enough time to find another job, or get well etc.

Many people may think that mortgage payment protection insurance is a waste of money, using the old adage “It’ll never happen to me”. However, this is not true. Being unable to work – and therefore having to struggle on state benefits – due to involuntary redundancy, accident or sickness can happen to anyone. It does not discriminate and can strike anyone at any time.

Therefore, if you are in full time employment for more than 16 hours a week and you have a mortgage, then taking out insurance against the financial ramifications makes sound sense.

Despite what the press says, it doesn’t have to be expensive to take out this kind of insurance, and nor do you have to take out a policy with your current mortgage lender. This means you are free to shop around to get a policy that offers you comprehensive protection without a high price tag!

If you are looking for mortgage protection insurance, then do not automatically accept the first quotation you get – premiums can vary wildly, as can the terms of the policy and the benefits.

Do your research – the internet is a quick and easy way to compare policies – and then make a decision from there.

Jason Hulott is Business Development Director of Protection Insurance. Protection Insurance is an internet based insurance business dedicated to getting consumers the very best insurance rates and the best products. Our product portfolio includes Mortgage Insurance

Article Source: http://EzineArticles.com/?expert=Jason_Hulott

Mortgage Insurance Cover to Fall Back On
By Simon Lance Burgess Platinum Quality Author

Everyone who has the commitment of a mortgage should give some thought to taking out mortgage insurance cover. Without having a policy to fall back on you could find yourself in a great deal of trouble when it came to keeping up with the repayments. If you cannot pay your mortgage then you could find yourself being taken to court by the lender and having to leave your home due to repossession.

With a policy you would pay your monthly premium and for this you would be able to rely on an income each month given by the provider and which would be tax-free. This income would be the amount that you insured against when taking out your policy which is up to a certain amount of your monthly mortgage repayment.

With the payment you receive from your policy each month you are then able to keep up with your mortgage outgoings to ensure that you would not be at risk of losing your home. This is essential because even just one missed payment would see the lender sending you a letter and you having to contact them to make an agreement to catch up. Of course this would be extremely hard without having an income to rely on and could be the downward spiral to repossession. Mortgage payment protection insurance would mean that you could avoid all of this and would be free to concentrate on making a recovery or of finding work again which was suitable.

When you look into taking out mortgage insurance cover you have to find out as much as possible about the cover as you can. All payment protection specialists will put different terms in the cover and you have to compare these so you will know if you would be eligible to claim. Exclusions have to be checked and some policies will contain more than others. You also have to check when cover would begin and end as this varies too. Also look for the provider offering to backdate a policy to the first day of you becoming unemployed or when you became incapacitated.

Usually policies will begin to payout your income from somewhere between day 30 and 90 of continuous unemployment or incapacity. Once the policy starts to pay it will do so for a certain length of time and then it stops. You are able to take out cover that would provide you with an income each month for 12 months or 24 months.

Mortgage insurance cover is worth paying out the small premium that a standalone specialist will charge each month and is a much more reliable plan than using savings or claiming for State benefits. You might not have enough savings to last unable to work or are unemployed for any length of time. You also might not be eligible to claim from the State as you have to meet many requirements. Even if you do get State benefits you would only be provided with help towards the interest part of your mortgage repayment and then only up to so much of it.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage insurance cover.

Article Source: http://EzineArticles.com/?expert=Simon_Lance_Burgess

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Sunday, August 30, 2009

Update August 30, 2009 All About Mortgage Insurance Information By Insurance Experts

Private Mortgage Insurance - What You Should Know
By Frampton Martin

If you are not able to make at least 20% down payment on your home, then you'll have to purchase a Private Mortgage Insurance policy. It is commonly referred to as PMI. It protects the mortgage lender if the borrower defaults on loan repayment. PMI is usually based on a percentage of your mortgage loan that you need to pay every month. Therefore, it varies with your credit risk and the amount of your home loan.

Types of Private Mortgage Insurance

Private Mortgage Insurance policies can be categorized into 2 types - (1) Borrower-paid PMI and (2) Lender-paid PMI. Each of the 2 types is discussed below.

1. Borrower-paid Private Mortgage Insurance: It is a type of Private Mortgage Insurance policy wherein the borrower pays the insurance premium. Generally, a mortgage borrower needs to purchase this policy when he/she is unable to afford 20% down payment on a home loan. It is also referred to as Borrower-paid Private Mortgage Insurance (BPMI) or Traditional Mortgage Insurance.

2. Lender-paid Private Mortgage Insurance: In Lender-paid PMI (LPMI), though the lender pays the premium cost of PMI, yet ultimately, the borrower has to bear the premium cost. Usually, lenders add the premium cost with the mortgage loan interest. Generally, a lender buys this insurance policy in case of high loan-to-value mortgage.

How to avoid Private Mortgage Insurance

You can avoid PMI even if you're unable to make 20% down payment on your home. Here are some ways following which you can avoid purchasing a PMI policy.

Go for an 80-10-10 home loan: In this loan program, you'll have to take out 2 loans along with paying 10% down payment on your home. The first mortgage finances 80% of the sale price and the second mortgage finances the remaining 10%. It is also referred to as piggyback loan.

However, it may not be possible for you to take out a piggyback loan in present times. Lenders are not offering this loan due to credit crunch that started in 2007.

Pay more interest on your mortgage: You can avoid PMI by paying more interest on your mortgage loan. Most of the times, the lenders waive off PMI if the borrowers pays more interest on the home loan.

Borrow from your friends/family members: You can borrow the required amount from your friends or family members. It is advisable that you mention the terms and conditions of repayment in writing so as to avoid any misunderstanding in future.

When you purchase Private Mortgage Insurance, it is quite important that you cancel it once you've repaid 20% of your home loan so that you only have 80% loan on your home. However, it may take a much longer time as most of your initial payments go towards the interest; you cannot pay much towards your principle in the initial period of the loan term. Most lenders allow borrowers to cancel PMI after 2 years of on time payments.

Bio: Frampton Martin is one of the financial writers associated with the http://www.Homebuilder-guide.com With his in-depth knowledge and vast experience, he has been able to leave a mark in writing and advising on all Home-buying issues and related issues of Private Mortgage Insurance. His remarkable guidance and support has improved the website into a global hub for the home buyers.

Article Source: http://EzineArticles.com/?expert=Frampton_Martin

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Monday, August 10, 2009

Update August 10, 2009 All About Mortgage Insurance Information By Insurance Experts

80-20 Combined Mortgage and Second Mortgage?
By Jess Peterson Platinum Quality Author

80/20 home loans are combined loans which provide the necessary funds to purchase a property and though at the beginning they may seem more expensive due to higher initial monthly payments, in the long run they will make you save a lot of money due to the lack of Private Insurance Mortgage Payments that they imply.

First: A Few Concepts

80/20 Mortgage loans are actually two different loans combined into a single financial product. In order to understand how this work, you need to have an idea about several loan concepts including: Mortgage Loan, Home Equity Loan, Private Mortgage Insurance, Down Payment, Collateral, etc.

It is not the purpose of this article to explain all the above concepts thoroughly, but we will give a clear idea of them so you can understand how 80/20 mortgage loans work and how you can take advantage of these loans in order to avoid having to pay the private mortgage insurance premium monthly payments and thus save thousands of dollars.

With a mortgage loan, the real estate property guarantees the repayment of the loan. In the event of default, the lender has the legal right to repossess the property and force its sell in order to claim his money. Home equity loans or second mortgages use the same property as collateral too. But they only use the remaining value of the property that exceeds the amount of debt that is being secured on the mortgage loan. This amount is known as equity.

When a mortgage loan finances more than 80% of the purchase or market value of a property, an insurance is required in order to obtain approval. This insurance is called private mortgage insurance and is meant to protect the lender in the event of the borrower defaulting on the loan. The premium of these insurances is rather high and it’s included in the monthly payments of the loan that are paid by the borrower.

80/20 Mortgage Loans: The Solution

The only way of avoiding payment of Private Mortgage Insurance is to put money down when purchasing the property. This implies requesting less than 80% of the property’s value. Thus, a down payment of at least 20% of the property’s value can free you from having to face the private mortgage insurance expensive payments every month.

80/20 Mortgage loans come to solve this problem. These loans are actually a combination of financial products and not a single loan. You get a mortgage loan with an amount equivalent to 80% of the property’s value, and a home equity loan that covers for the rest of the money needed to purchase the property. With this procedure, you get all the money you need in order to buy the asset without having to pay for the private insurance mortgage premium.

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Jessica Peterson writes finance articles for Yourloanservices.com where she shares her knowledge about how to get money for a starting-up business, consolidating any kind of debt, repairing a home even with a bad credit history and more.

Article Source: http://EzineArticles.com/?expert=Jess_Peterson

Mortgage Refinancing: Avoid Paying Private Mortgage Insurance
By Louie Latour

If you were required to purchase Private Mortgage Insurance (PMI) when buying your home, your financial situation may have changed enough that mortgage refinancing will allow you to stop paying this expense. Mortgage Refinancing has the advantage of giving you lower monthly payments and better terms on the new loan. Here are several tips to help you decide if mortgage refinancing is right for you.

Mortgage lenders require borrowers to purchase Private Mortgage Insurance to protect themselves from certain losses due to foreclosure. PMI does absolutely nothing for the homeowner but drive up your monthly payments, sometimes hundreds of dollars per month. When you finance more than 80% of the value of your home, most lenders require Private Mortgage Insurance. If the value of your home has gone up, you could drop your PMI early with mortgage refinancing. A new appraisal prior to refinancing the loan will tell you exactly how much equity you’ve built in your home and is well worth the expense if it allows you to stop paying PMI.

Even if you do not have sufficient equity to avoid PMI with a traditional mortgage lender you can still avoid it by using a piggyback loan when mortgage refinancing. Piggyback loans are also called 80/20 loans and are actually two loans, often from two different lenders. The first loan is for 80% of the total loan value and the remaining 20% is the piggyback loan making up the difference. Piggyback loans come with slightly higher interest rates because the second lender assumes more risk; however, this expense will cost you much less than if you were paying Private Mortgage Insurance.

You can learn more about your mortgage refinancing options, including common mistakes to avoid by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com

Mortgage Refinance Information

Article Source: http://EzineArticles.com/?expert=Louie_Latour

Sunday, August 2, 2009

All About Mortgage Insurance Information By Insurance Experts

I. Mortgage insurance is defined as a decreasing term life insurance depending to the amortization of the mortgage period while the premium remains the same over that period. You can purchase the mortgage insurance from the bank, trust or life insurance companies.
1. If you purchase your mortgage insurance from the bank or trust
a) No medical exam is required
b) The beneficiary of the policy is the bank or trust
2. if you purchase your mortgage insurance from the life insurance companies
a) medical exam is required for any sum insured over $100,000
b) The beneficiary of the policy is designated by you ( Kyle J. Norton)

II. Disability mortgage insurance as defined as an insurance policy that will your monthly mortgage payment over period ( normally 12 months) indicated in the policy, if you are disable while the policy is in forced.

III. Unemployment mortgage insurance as defined as an insurance policy that will your monthly mortgage payment over period ( normally 12 months) indicated in the policy, if you are unemployed while the policy is in forced.

Home Owners Insurance Vs Private Mortgage Insurance (PMI)
By Feseha George

Each mortgage payment includes 5 items. It is called "PITI + PMI". "P" stands for payment that reduces the Principal loan balance (This goes towards your equity ). "I" stands for Interest that you pay to the lender for lending you the money to buy the house. "T" stands for Taxes to the county. "I" Stands for the Home owners Insurance. Finally, "PMI" stands for Private Mortgage Insurance.

Homeowners Insurance is a must if there is a mortgage on your house. It's the only financial protection for the policy holder's largest asset. It protects your home, your belongings inside and any losses due to a disaster. It's your personal liability that protects you...not the bank.

For example, if your house is damaged or destroyed, or if your valuables are stolen, you contact the insurance company and they will send out an appraiser who will assess the damage and provide you with an estimate of the cost to repair. If the loss is due to theft or vandalism, the appraiser will need a detailed list of the items stolen or damaged, their value and police reports filed due to the theft or vandalism.

On the other hand, Private Mortgage Insurance is extra insurance lenders require from most home buyers who obtain loans that are more than 80 percent of the homes value. Normally, buyers with less than 20 percent down on a home are required to pay PMI.

In the mortgage business, it protects the lender against loss if the borrower defaults on the loan and by enabling borrowers with less cash to have greater access to home ownership. Meaning, you can buy a home with a three to five percent down payment without waiting years to save up a large sum of money. However, if the lender is unable to recover costs after foreclosure and sale of the property, they receive 15 percent of what you did not pay at closing.

http://www.amerimort.com

http://www.HoustonFHA.com

Article Source: http://EzineArticles.com/?expert=Feseha_George

Unemployment Mortgage Insurance Defined
By Marilyn Katz Platinum Quality Author

In my area, whenever somebody closes on a home mortgage, or even when they refinance, they usually get lots of offers for a product called mortgage insurance. People do not always understand this offer, and it is important to look at the various products that might cover a home, or a home mortgage.

Mortgage life insurance is the product that is usually presented on postcards and letters that offer to cover a mortgage in case the owner dies. Sometimes the offer also states that the owner can be covered in case of a disability or critical illness, and that their are options to cover the policy in case of unemployment. Well, this is really a term life insurance policy that has a face value set to cover the balance owed. Riders, or additional terms, can provide cash during a critical illness or disability. The unemployment rider usually only pays the premium during a job loss, but does not cover the home payments.

One of the most popular things about mortgage life insurance is the cash back option. This is called Return of Premium, and it means the insured person will have all premiums refunded at the end of the policy term if they survive the policy. This can be a great option because it provides a cash benefit if the insured person dies, and it returns all of the premiums if the insured person survives.

However, it is more likely that a homeowner will become unemployed than pass away. In fact most of us will suffer a job loss a time or two during our working lives. Another product, alltogether, is unemployment mortgage protection. It is also called job loss protection or layoff protection, because a person does not have to own a home in order to collect the cash benefit. The terms of collecting the benefit are clearly stated, and in general, they follow the sort of rules that state unemployment benefits follow.

But state unemployment benefits are usually not enough to keep a mortgage paid, credit cards paid, and to put food on the table. So this product offers extra cash, from $1,000 - $2,000, which gives a homeowner extra security during a layoff. These products have been very popular in the UK, but are just being introduced in the US market.

Of course, some people will also associate mortgage insurance with the type of credit protection that lenders sell, and some may require. However these plans pay the lender, and not the insured person or beneficiaries. So they are designed to protect the loan company, and not to protect the consumer.

Of course, most homeowners will also need homeowners insurance. These insurance policies cover the property, and not the insured person's life or income. They cover a home and property against damage or liability. If a homeowner carries a mortgage, the lender will probably require homeowners insurance. Even if the mortgage is paid off, it is probably prudent to have a home covered. If your home is damaged, or if somebody is hurt on your property, you will have an insurance company behind you.

We can answer your questions about unemployment mortgage protection online!

We can also give you competitive term life insurance quotes.

Article Source: http://EzineArticles.com/?expert=Marilyn_Katz

Private Mortgage Insurance or PMI
By Mark Nash

Home buyers can be faced with paying Private Mortgage Insurance or PMI if they are putting less than a twenty-percent down payment on their new home. This monthly mortgage insurance remains in effect until the borrower has made principal payments to have twenty-percent equity or appreciation now vests them with at least twenty-percent equity. Some mortgage lenders now offer programs to eliminate PMI. These new programs offer borrowers a first mortgage for eight-percent, and a second mortgage for fifteen percent with a five percent down-payment. This loan is PMI-free.

Here is an example; say a buyer is purchasing a home for $250,000. The buyer could take out a first mortgage for $200,000 or eighty-percent of the purchase price. The buyer can also arrange for a second mortgage of $37,500 which is fifteen=percent of the purchase price. The buyer would then make a five-percent down payment. This is referred to a 80-15-5 program. In this situation the buyer would not be required by the mortgage lender to take out Private Mortgage Insurance, which would run about $100 dollars a month.

An additional advantage of the 80-15-5 program is that the mortgage interest on the second mortgage is tax deductible. PMI insurance premiums is not deductible, but legislation has been introduced to allow PMI to deductible as well.

Mark Nash is the author of "Fundamentals of Marketing for the Real Estate Professional", "Starting & Succeeding in Real Estate", "Reaching Out: The Financial Power of Niche Marketing", and "1001 Tips for Buying and Selling a Home". Mark is a contributing writer for: Realtor (R) Magazine Online, Broker Agent News, Real Estate Executive Magazine, Principal Broker, and Realty Times. He contributes residential real estate analysis to Business Week, CBS The Early Show, CNN, HGTVpro.com, The New York Times, and USA Today.

View his books at http://www.1001RealEstateTips.com.

Article Source: http://EzineArticles.com/?expert=Mark_Nash

Private Mortgage Insurance Deductibility Rules Murky
By Mark Nash

Recent legislation signed into law allowing some tax deductions on Private Mortgage Insurance (PMI) premiums by homebuyers is filled with more questions than answers as of this writing. As with any tax questions, seek out an experienced tax professional. Many in the mortgage industry were caught off guard by this new tax law. Depending on many variables in the legislation, do not take for granted any advice on deductibility from those who do not have a thorough understanding of the short and long term implications of this legislation.

What we do know:

-Borrower-Paid Private Mortgage Insurance for eligible borrowers who have mortgage loans funded after January 1, 2007 might be able to utilize the new legislation.

-At this time, only eligible purchases qualify. It is still unclear if refinances and rehabilitation loans fall under this legislation.

-Early interpretations by those in mortgage industry believe the legislation covers conventional and FHA financing.

-The legislation limits the full deductibility to borrowers with an adjusted gross income (AGI) of $100,000 or less. In the case of a married individual filing a separate return, the AGI maximum is $50,000. The deduction in gradually phased out for borrowers with AGI’s up to $109,000. Contact a tax professional concerning your own situation.

-The current legislation specifically states that unless the legislation is extended, it will expire on December 31, 2007.

-Taxpayers who wish to utilize this new legislation must itemize on their tax return to receive the benefit.

-Deductibility issues are between the borrower and the Internal Revenue Service. Mortgage loan originators will be reluctant to provide individual tax advice on this new legislation. Borrowers should seek out qualified tax consultants for advice.

Mark Nash is the author of five real estate books, new for 2007; Real Estate A-Z for Buying & Selling a Home. William J. Sittig, Chief of the Science, Technology and Business Division of The Library of Congress has invited Mark to make a presentation on 1001 Tips for Buying and Selling a Home to the members, public and staff of the Library on March 21, 2007. Nash has been featured on Bloomberg Video-on-Demand, CBS The Early Show, CNN, and The Today Show. He is a syndicated columnist for RealtyTimes.com and reviews books for MyShelf.com and The Midwest Review of Books.To subscribe to his free monthly ezine; Agent to Agent visit: http://www.AgenttoAgentezine.com.

Article Source: http://EzineArticles.com/?expert=Mark_Nash

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Mortgage Insurance Rates
By Jennifer Bailey

In order to secure themselves against potential default of mortgages, mortgage sellers adopt the policy of buying insurance policies. These insurance policies are mandatory for those mortgages in which there has been a down payment of less than 20%. The premiums over these mortgage insurance are generally passed on to the buyer of the mortgage, who pays it along with the monthly payments towards the mortgage. Such mortgages are also called BPMI, or Borrower Paid Mortgage Insurance. There is also another kind of mortgage insurance – the LPMI, or Lender Paid Mortgage Insurance. The conventional pattern is to go in for a BPMI.

Rates of mortgage insurance vary according to current situations. As in mortgages, the rates of the insurance also may be either fixed or adjustable. Fixed-rate mortgage insurance is constant for the entire life of the mortgage, while adjustable-rate mortgage insurance varies according to market fluctuations in rates.

Mortgage insurance rates also differ depending on whether they are BPMI or LPMI. There is not much difference in the numbers; the difference lies in who pays the premiums of the mortgage. In addition to all these factors, mortgage insurance rates also depend on the amount of mortgage coverage that the insurance provides. A greater coverage would be levied at a lower rate of insurance.

It is not easy to mention the rates individually, as there are a wide number of factors and statistics involved and they vary from day to day. However, any mortgage insurance company would be more than pleased to give a current list of the insurance rates if asked. It is highly necessary to know the current mortgage insurance rates while buying a mortgage, as typically it would be the borrower who would have to pay for it. Most borrowers neglect to ask the mortgage rates from their mortgage sellers, or they are simply misinformed. These are the people who later find themselves stuck in a rut of high monthly payments.

Mortgage Insurance provides detailed information on Mortgage Insurance, Mortgage Insurance Calculators, Mortgage Insurance Leads, Mortgage Insurance Rates and more. Mortgage Insurance is affiliated with Mortgage Life Insurance Quotes.

Article Source: http://EzineArticles.com/?expert=Jennifer_Bailey

Mortgage Insurance - Find the Best Policy Get a Cheap Quote
By Bryan Burbank Platinum Quality Author

Today it is hard to watch television or read the newspaper and not know that we are having a mortgage crisis. Even though most of us never plan on defaulting on a mortgage there can be many reasons this can happen. A loss of employment, sudden death of the primary provider in the family or a catastrophic injury. These are some good reasons to have mortgage insurance. This insurance provides a sense of security to the lender to counter the risk that the homeowner may default on the mortgage.

Mortgage insurance is a partnership between your lender and the insurance company in which they both share the overall risk. If you as the borrower can not pay back the loan then both companies have some form of protection. As you search for this type of insurance you must be clear and understand the difference between mortgage insurance and homeowners life insurance. Each one of these has a different and specific purpose.

Mortgage life insurance protects the borrower and his or hers family not the lender or the insurance company. In the event of an untimely death of the primary policy holder the family know has the funds to pay off the loan freeing them from the financial burden this can cause.

Homeowners mortgage is also beneficial to the home buyer because the insurance company assumes the risk. This makes it much easier for the borrower to get a loan now that the homeowners insurance company is assuming the risk and it may even allow you to put down a smaller down payment.

If you are the owner of multiple homes mortgage insurance will allow you to provide less money for down payments. You may be able to qualify for certain tax breaks since you can deduct the amount of interest rate that you pay to the lender when it is tax time.

Some feel that it can be a negative to have mortgage insurance because you will have to pay more costly insurance premiums and annuals. Only you as the buyer can weigh the pros and cons of mortgage insurance and see if it the correct move for you. I feel in the end that the benefits out weigh the cost and it could be the right decision for you.

Learn how to find: Discount Mortgage Insurance

Get some Advice about: Types of Insurance

Bryan Burbank is an expert in the field of Discount Insurance.

Article Source: http://EzineArticles.com/?expert=Bryan_Burban

Mortgage Insurance Calculators
By Jennifer Bailey

Mortgage insurance calculators are used to calculate different aspects relating to mortgage insurance. They can calculate the length of time for which a person will have to keep making insurance payments on his or her mortgage. This period is displayed in number of months.

Mortgage companies secure their sold mortgages by taking an insurance policy on them. The premiums of this insurance policy are passed on to the people who have bought the mortgage, and are bundled into their monthly payments. The insurance premiums may not run for the entire duration of the mortgage. Mortgage insurance calculators help to determine how long the mortgagor will have to continue insurance payments on the mortgage.

This calculation is actually a very simple task. There are six important figures that are required to be inputted into the calculator – the current property value, the value of the property at the time of taking the mortgage, the current interest rate, the current balance amount, the monthly payment and the expected appreciation rate of the property.

A person has to pay insurance on the mortgage until the time the value of the remaining mortgage reaches 78% of the current property value. Each month a payment is made, a portion of it goes toward the principal value of the mortgage. Hence, the mortgage value falls down month after month. Once the residual mortgage value is below 78%, the mortgagor is no longer liable to pay any insurance premiums on it. Alternatively, there are no insurance premium payments to be made after the mortgage balance falls below 80% of the appreciated property value.

Buyers of mortgages may waive insurance premiums in lieu of higher interest rates on their mortgages. But more often than not, this is a tricky decision to make – whether to go for higher interest rates or to settle for paying mortgage premiums. There are special mortgage insurance calculators that can help buyers of mortgages decide this aspect. Such calculators can help to compare the total interest costs over the mortgages and the total portion of payments done towards mortgage insurance premiums.

Free mortgage insurance calculators are available online. Several mortgage-related websites feature simple, easy-to-run programs which can help buyers decide insurance aspects of their mortgages.

Article Source: http://EzineArticles.com/?expert=Jennifer_Bailey

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All About Mortgage Insurance

Monday, December 21, 2009

Update Dec. 21 - 2009 All About "Mortgage Insurance" Information By Insurance Experts

Tuesday, December 1, 2009

Update Dec. 01 - 2009 All About "Mortgage Insurance" Information By Insurance Experts

Saturday, November 14, 2009

Update Nov, 14 - 2009 All About "Mortgage Insurance" Information By Insurance Experts

Monday, October 26, 2009

Update Oct. 27, 2009 All About "Mortgage Insurance" Information By Insurance Experts

Thursday, October 8, 2009

Update Oct. 08, 2009 All About Mortgage Insurance Information By Insurance Experts

Sunday, August 30, 2009

Update August 30, 2009 All About Mortgage Insurance Information By Insurance Experts

Monday, August 10, 2009

Update August 10, 2009 All About Mortgage Insurance Information By Insurance Experts

Sunday, August 2, 2009

All About Mortgage Insurance Information By Insurance Experts

All About Mortgage Insurance Information By Insurance Experts

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