All About Mortgage Insurance: 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.

Learn What Private Mortgage Insurance Is
By Frank Rodriguez Platinum Quality Author

If you're looking at buying a home, you may have heard the mysterious acronym PMI being thrown around, never realizing what it stood for. It stands for private mortgage insurance, which is quickly becoming a favorite option among many people who might struggle making a down payment.

A down payment is usually around twenty percent, but not everyone will have this much to spend up front. In that case, PMI can be used in place of the full funds. This is regardless of apllying for a fixed or adjustable rate mortgage. It might even manage to stand in completely for the payment, for people not to have to spend anything at all. Needless to say, it might well stick around.

Part of the reason for this is that with the current state of the economy, there are more and more people wanting a house, but not knowing where they're going to get the money. If you're looking at a $200,000 home but aren't in a great position financially, you might have a hard time buying it.

Yet when you take advantage of private mortgage insurance, it could be very little time before all of this is taken care of. You will have to make monthly payments, at the same time as your mortgage payments, but these will be easier to take on. You'll put in the funds in escrow until everything is taken care of or you can cancel.

Even with its rising popularity, this is not an option many people are aware of, and so they might not take it even when they need it. To some extent, it is only the recent situation that has brought it to light in the first place. All the same, it might be the best option for you.

You've probably heard that you don't want too many other people getting involved in your finances, and this is true to some extent. But under special circumstances, you need to take whatever actions will work for you, and this can end up doing a lot of good so you can have your new home.

To find more detail as it relates to private mortgage insurance and whether you'll need it you can find more adjustable rate mortgage information at the aforementioned site.

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

Unemployment Mortgage Insurance Vs Disability Or Death Mortgage Insurance
By Robert McKnight Platinum Quality Author

Many questions exist about the different lines of mortgage protection insurance. Because of the growing number of home foreclosures and high unemployment, you are searching for more information about this type of insurance. Many wonder about the differences between the different types of mortgage protection insurance and which one is the best for them.

The real question many face is should you get unemployment mortgage insurance, disability or death mortgage insurance.

Unemployment Mortgage Insurance Explained

Unemployment mortgage insurance is for those who simply want protection in the event they lose their job. If you lose your job through no fault of your own, the mortgage unemployment insurance provider will pay you a cash benefit while you search for a new job.

The recent unemployment crisis in the U.S. has many people worried about the security of their job. You would not be crazy to be worried, nor would you be crazy to consider this type of mortgage protection insurance. While this type of insurance can be valuable to anyone who is the breadwinner for a family, it is suited more for the younger worker who needs the extra protection.

Disability Mortgage Insurance Explained

This type of insurance is designed to protect those who lose their job due to disability and are no longer able to pay their monthly mortgage. This can be a short-term disability or permanent disability. However, if you become permanently disabled, your disability insurance will only pay for a specified period of time. It depends on the policy how long that will be, though the more expensive policies will generally cover you for about three years worth of mortgage payments.

Disability mortgage insurance is very similar to other forms of mortgage insurance in that it covers your monthly mortgage payments due to a loss of employment. In fact, some unemployment mortgage policies will allow you to add disability coverage as a reason for unemployment and roll both into the same policy.

An accident or any other reason can result in your disability at any time, but as you age, the likelihood of becoming disabled increases. Because of this, disability insurance is generally more beneficial to older workers where the risk is higher.

Death Mortgage Insurance Explained

Death mortgage insurance is a little different from other forms of protection insurance. Death insurance will pay the entirety of your mortgage in the case of your death. It is designed to lessen the burden of your family and allow them to keep the home you have provided for them.

Similar to disability insurance, it can be beneficial to a worker of any age because of the chance of an accident or terminal illness. However, older workers are more likely to purchase this type of insurance because of the higher risk. You should consider that younger workers with families who have not yet built up their savings and investments are the prime beneficiaries of this type of protection in the case of an accident.

All three of these types of mortgage protection insurance can be beneficial to you if you want to add protection for your largest personal investment. You should examine your own situation to decide which type of coverage is best for you. Keep in mind though, unemployment insurance, disability mortgage insurance, and death mortgage insurance are not mutually exclusive and you can indeed seek complete protection with all three polices from some providers.

Be sure that you take the appropriate measures to protect yourself and your family should the unfortunate and the unforeseen happen. Get started finding mortgage protection insurance today!

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

Mortgage Unemployment Insurance 101
By Robert McKnight Platinum Quality Author

If you have only recently become aware of mortgage unemployment insurance this article will give an overview of the basics. Mortgage unemployment insurance is one type of mortgage protection insurance and is becoming more and more popular for those who are interested in protecting their home from foreclosure due to loss of employment.

Coverage is Easy to Qualify For

Qualifying for this coverage usually requires a year-round, full-time job and a mortgage. Although, most of these insurance providers will not offer you coverage if you are self-employed.

It is Easy to Find a Policy to Suit Your Needs

As the market for this new type of coverage has grown, more providers have sprung up, making it easy to find this type of insurance. You can usually obtain a policy from your mortgage lender or find another provider.

The internet is a great place to search and compare policies. There are lots of reputable providers and you can easily and conveniently compare rates and polices online.

Mortgage Unemployment Insurance is Easy to Understand

In addition, these policies are pretty straight forward and easy to understand. You pay a fairly low monthly premium and if you lose your job through no fault of your own, the policy will pay you a cash benefit based upon your monthly mortgage for a specified period of time or until you gain employment.

There are, however, different policies offered by different mortgage unemployment insurance companies. The differences generally are the following:

* Amount of cash benefit

* Length of unemployment before benefit begins

* Time period of cash payout

* Waiting period before claims can be filed

These are all items in your policy that will be agreed upon when purchasing mortgage unemployment insurance. They can also be used to compare policies and rates.

Easy to Add Additional Coverage Options to Increase Your Protection

In addition to a simple policy, you can also get further protection by extending your policy to include enhancements. Here are some of the more common extensions of a normal protection policy.

* Addition of spouse to policy

* Disability insurance (loss of job through disability)

* Protection for striking workers

All of these additional protections will add to the cost of your premiums, but they can certainly come in handy in specific situations.

While mortgage unemployment insurance is one of the simpler forms of insurance, it still requires some research on your part. In today's rocky economic climate, which includes escalating unemployment rates, this type of protection is becoming a safer bet and nearly a necessity for those who want to protect their home. Get started finding mortgage protection insurance today!

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

FHA Mortgage Insurance
By Justin Narin Platinum Quality Author

The FHA loan insurance program was created to help first-time buyers get into homes. However, first-time buyers usually don't have 20% down payments and may have a spottier credit history. In order to provide protect taxpayers from paying for defaulted FHA mortgages, the loans include mortgage insurance premiums (MIP).

The FHA Mortgage Insurance Premium
FHA mortgage insurance is similar to the private mortgage insurance (PMI) required for conventional mortgages with down payments below 20%, but there are some key differences.

Up-front fees: Unlike the traditional PMI, the FHA MIP includes a 1.5% up-front fee at time of closing. The fee is usually included in the loan, so you pay it over the life of the loan.

Rate: The FHA MIP is also mandated at .5% of the loan amount per year, divided over 12 months. PMI rates are also usually .5% divided over 12 months, but the rates do vary by lender.

Removal: Unlike PMI, the FHA MIP is mandatory for the first five years of loans with terms of more than 15 years, even if your loan balance reaches 78% of the original home value or sales price. PMI premiums can often be removed if the loan balance is below 80% of the current market value. Conventional lenders are required to automatically remove PMI when the loan balance falls to 78% of the original loan amount.

Exceptions: There are some exceptions to the mandated FHA mortgage insurance premium. If you have a loan term of 15 years or less AND put down 10% or more, the MIP will be cancelled when the loan balance is 78% of the original appraised value or original sales price, whichever is less. If you pay 20% down on a 15-year loan, you won't be required to pay the MIP.

How the MIP Affects Your Loan Decision
Most people want to avoid paying mortgage insurance because it adds no value to the home and doesn't go towards the principal. If you don't have a 20% down payment, then you will most likely have to pay it for any loan, whether it's from the FHA or a conventional lender. In that case, carefully compare the costs of each loan.

If you've saved a 20% down payment and have a good credit history, then a conventional mortgage is probably better for you because you won't have to pay PMI
on a 30-year mortgage, as you would with an FHA loan. However, if your down payment is a family loan or gift, you may not qualify for a conventional loan even with 20% down. In that case, an FHA loan with MIP may be your only option. If you can afford the higher payments for a 15-year mortgage, that may be the best option.

FHA Mortgage Insurance Refunds
The FHA and HUD owe mortgage insurance premium refunds to some homeowner who received a loan between September 1, 1983 and January 1, 2001 due to excess earnings from the FHA's Mutual Mortgage Insurance Fund.

You may be eligible for a premium refund if you:

* acquired an FHA loan after September 1, 1983

* paid an up-front mortgage premium at closing

* did not default on your mortgage

You may be eligible for a share of the excess earnings if you:

* acquired your loan before September 1, 1983

* paid your loan for more than seven years

* had your FHA MIP terminated before November 5, 1990

There are also exceptions for loan assumptions, FHA to FHA refinances, insurance claims by a mortgage company, and the statute of limitations.

In most cases, you would have been notified of the refund when HUD received notification that the FHA MIP on your loan was terminated. You would then be sent a check or an application. If you receive an application, read it carefully, compete it, have it notarized, and return it to HUD with the required proof of ownership.

If you didn't receive a notice within 45 days of paying off your loan, confirm with your lender that they sent notification of MIP termination to HUD. If they did, contact HUD. If you've already applied and didn't receive a response within 120 days, contact HUD. You can reach them by phone or by mail.

Phone: (800) 697-6967, 8:30 a.m. to 8:30 p.m. Eastern Standard Time, Monday through Friday.

Mail: U.S. Department of Housing and Urban Development, P.O. Box 23699, Washington, DC 20026-3699.

Note: All inquiries should include your name, your FHA case number, the date that the mortgage was paid-in-full, the property address, and your daytime phone number.

Mortgage insurance is considered a burden by man, but if it's the only thing standing between you and homeownership, it's a burden worth bearing. For more articles on FHA Mortgage Insurance, visit: http://www.bills.com/fha-mortgage-insurance/

Justin has 5 years of experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com

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

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