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.

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

What is Mortgage Insurance?
By Chris Hallmark

Lender's Mortgage Insurance, also know as Private Mortgage Insurance, (PMI), is required on more and more NJ mortgage loans nowadays. Basically, in a nutshell, it protects the New Jersey mortgage lender. To give it a more professional definition, as defined by Fannie Mae and Freddie Mac, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. So, essentially, it protects the mortgage lender if you default on your mortgage loan. There really isn't any more to it than that.

Mortgage Insurance in New Jersey is used to offset the losses a lender faces when the property goes into default, then total foreclosure, then can't recover those losses fromt eh foced sale of the property in a foreclosure aution that takes place in NJ. The annual cost of PMI varies greatly and depends on a number of factors. NJ mortgage loan term, loan type, loan-to-value ratio, and total coverage amount, all factor into exactly what a PMI payment amount will be , on a monthly basis, for some who refinances in NJ or purchases houses in NJ for sale. Basically, anyone who gets a mortgage in the Garden State, likely will pay PMI.

The "catch" to PMI is that it is ONLY required on FHA loans, or conventional loans, when the buyer of NJ homes is putting less than 20% down. PMI may be paid up front on the mortgage loan, or built into the loan through monthly payments, very similar to when you are getting any other type of insurance in New Jersey. If you are putting less than 20% down when buying NJ homes, then the PMI "falls off" of your monthly mortgage payment, when the loan to value (LTV) of your property, gets below the 80% mark, wether it is by paying down the loan, or simply by market appreciation. Please keep in mind, that PMI and Homeowners Insurance, are two TOTALLY different types of insurance!

In the past, a borrower was able to get a second mortgage to avoid paying the PMI, if they did not have the required 20% down payment. Say they had 15% to put down on an NJ home for sale, and they wanted to avoid paying PMI, they would get a "subordinate" mortgage for the other 5%. Nowadays, getting secon mortgages is much harder, and more costly, so buyers of New Jersey homes for sale generally just accept the PMI, knowing that it won't be there forever.

Please visit our website to learn more about New Jersey mortgage programs, and how to avoid paying PMI with other creative strategies!: NJ Mortgage Programs

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

Mortgage Protection - 5 Things You Need to Learn About Mortgage Protection Insurance
By Robert McKnight Platinum Quality Author

Mortgage protection insurance is a relatively new type of insurance that you may not know a lot about. This article will give you a quick overview of some of the most important aspects of this type of coverage.

Mortgage Protection Insurance is Not PMI Insurance

Do not confuse mortgage protection insurance with private mortgage insurance or PMI. PMI is a type of insurance that mortgage lenders require you to obtain if you do not put a down payment of at least 20 percent on your home. PMI protects the lender, not you. Once your principle balance on your home mortgage dips below 80 percent of the appraised value of your home, you can have it removed.

Mortgage Insurance Policies Differ

It depends upon the policy as to what a mortgage protection policy will actually pay. If you get mortgage life insurance, most policies pay off the entire balance of your mortgage in the case of your death. If you have mortgage unemployment insurance, then policies will pay your monthly mortgage payment while you look for another job.

Mortgage disability insurance will pay your monthly mortgage if you become disabled temporarily or permanently. If it is a permanent disability, there will generally be a time limit as to how long you can collect the benefits of the mortgage protection insurance.

These policies will pay an agreed upon amount that correlates to your mortgage payment. It may pay only the principle and interest, or it may pay principle, interest, taxes, and insurance. It depends upon the policy you choose.

MPI Pays a Cash Benefit for a Specified Time Period

Unless you get mortgage life insurance, which pays off the mortgage completely if you die, there will be a limit on the period of time for which you can collect cash benefits. These limits can be anywhere from three months to three years.

Those policies with the longer period of payment will carry with them a higher premium. When choosing the right mortgage protection insurance for you, you should consider what is more important. You may only need help with your mortgage payments for a few months while you hunt for another job. If you become disabled, you may need to have a longer payment period during your recovery.

There is a Waiting Period Before Collecting MPI Benefits

Virtually all mortgage protection insurance policies will require a waiting period before you are able to collect on a claim. Most will not honor a claim against the insurance policy if it is made within the first six months of your policy.

Also, most policies will require that you be unemployed for a certain amount of time before the cash benefit will be paid if you have mortgage unemployment insurance or mortgage disability insurance. This time period is generally anywhere from 30 to 60 days.

Mortgage Protection Insurance May Pay if You Go On Strike

If you are a union worker and your union goes on strike, you may be eligible to collect the benefits of mortgage unemployment insurance. Many policies have this as an option, though not all. If you are a union employee, you should make sure your mortgage protection policy has this as an additional protection against unemployment.

Mortgage protection insurance should not be lightly disregarded in the current economic climate, nor should it be purchased haphazardly. Take the time to learn about this new and possibly helpful type of insurance and get quotes from mortgage protection insurance providers.

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

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