All About Mortgage Insurance

Monday, February 15, 2010

Update Feb. 15 - 2010 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)

Cheapest Term Life Insurance - Match the Repayment Terms of Your Mortgage

By Elanora T. Kelly

Your current condition as you age plays a great role in your life insurance rates. In order to make a good assessment on your life insurance needs, Competitive Term Life Insurance will aid in evaluating your needs.

Competitive Term Life Insurance quote will provide the best deals there is in the market. In case like death of a partner, term life assurance will provide funds if you are short of assets.

If you canvass on the availability of life assurance that will best suit your needs, you need to determine the precise cost of income that you will lost when a spouse dies. Having this estimated, compute for the amount in order for you to know how much capital you will need to fill in that income. And how will you make it possible, through a preferred investment.

This way, you will be able to determine on the perceived loss of spouse and loss of income provided that you will need to survive when that time comes.

You will need to consider also the health of your parents, your previous financial commitments, and the needs that you have to meet for children still living under your roof.

It is best that you make financial assessment annually for your goals. You may need a lawyer before making a big financial decision to help you legally with process. this will keep your status on competitive life insurance updated and eventually will help assess your credibility to avail of insurance quotes in the future given your individual financial adjustments.

Term life insurance has gained credibility in the recent years when you talk about insurance quote credibility and affordability. This is the amount of money you are going to pay to make your term life insurance in effect. No matter the health condition, as long as you diligently pay your insurance policy, you will still have the policy coverage.

Term Life assurance policy is renewable within a certain time span. You have varied options of paying our premiums. It would matter with regards to the option as annually or monthly.

You can save on your premiums. You do this by selecting from the number of choices available. This will vary depending on the company protocols. For you to make a good choice, you should have a ready estimate on the amount of money that your family will need for immediate financial needs. Also, you need to determine how much income will be lost and how much will be needed to sustain your household. With a rough estimate, you will be able to assess what insurance premium will suit your individual needs to insure yourself.

In order to secure a better insurance quote, an alternate approach to your lifestyle will make a huge impact for you to avail the best offers that any company can provide. Your overall health condition will greatly influence your candidacy to purchase a term life insurance quote of your choice. Now, finding the best insurance quote has never been easy and practical. You just need to make choices on availing cost-effective quotes.

When performing a Life Insurance Comparison be sure to list your requirements and check out these companies.

Learn More about Insurance

For information on all types of Cheapest Term Life Insurance come to lifeinsurancetypes.org

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Wednesday, January 27, 2010

Update Jan. 27 - 2010 All About "Mortgage Insurance" Information By Insurance Experts

Pros and Cons of Mortgage Life Insurance

By Denise M

Mortgage life insurance is a type of insurance wherein the policy holder is able to clear mortgage liabilities in the event of the untimely death of the insured. In such a case, death benefits are equivalent to the outstanding balance on the loan. Quite clearly, this security gives tremendous peace of mind that no matter what, despite the worst case scenario, your family will always have a home to live in. Apart from that, many insurance policies offer optional provisions which include coverage for critical illness. With this option, the insurance company will pay out the outstanding loan in case you qualify conditions for terminal illness.

However, it is vital to examine the pros and cons of mortgage insurance before you make up your mind about purchasing a mortgage insurance policy. One of the major advantages of mortgage life insurance is that it is easy to obtain. In these days of uncertainty and insecurity, it may make sense to opt for a mortgage insurance policy to make sure your loved ones have a home to stay in, even if, anything were to happen to you.

Here are some advantages and disadvantages of a mortgage life policy to help you make an informed decision:

Advantages of Mortgage life insurance

Guarantees clearing your mortgage payment: The death benefit of mortgage life insurance pays off the outstanding balance on your mortgage, and thereby guarantees a home for your family in case of your death. What is also important to note is that, unlike a regular life insurance policy, death benefits from a mortgage insurance policy is not paid to your loved ones but goes directly to the mortgage company towards the payment of your outstanding mortgage. This is useful to ensure that death benefits are used primarily for the purpose of clearing off the mortgage.
Health qualifications for a Mortgage Insurance are considerably lower than qualifying for a regular life insurance policy: The health standard to meet to buy mortgage insurance is much lower than a regular term insurance policy. If you are in bad health then a regular life insurance policy may require you to pay higher premiums. If you suffer from severe health impairments, you may not even qualify for regular life insurance. In such cases, mortgage lifeinsurance is a very viable option for you. It gives you peace of mind by allowing you to get coverage for what is probably your biggest liability-your home.
Financial help during terminal illness: Mortgage life insurance policies may provide protection coverage in case of terminal illness, provided, your mortgage insurance includes terminal illness benefits and you opt for it. This indeed comes as great savior for the policy holder who contracts a terminal illness and can no longer work or earn money to pay the monthly mortgage. In such cases, the mortgage life insurance company will provide accelerated death benefits to pay off the mortgage.

Disadvantages of Mortgage Life insurance:

No payout until the stipulated time period is passed: Regardless of the situation there is no payout within the first six months of the policy. So in case any calamity strikes the insured before the stipulated time, the insured will not receive anything.
Mortgage life insurance coverage decreases with time: In case of your death, the amount of cover will depend on the term of insurance, which decreases more or less in line with the amount outstanding on your mortgage. As a result, you end up paying more for less coverage over the years. That essentially means by the end of the plan, there will be no benefits if you outlive the policy.
Excludes any Pre-existing medical condition: Any pre-existing medical conditions (terminal or otherwise) before the investment are excluded in the policy. Therefore, such conditions cannot be claimed if the situation arises.
Fixed monthly premiums Although insurance cover reduces with time the monthly premiums still remain fixed throughout the life of the policy.

AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

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

Pros and Cons of an Option Arm Mortgage

By John Hurlbut

An Option ARM (adjustable rate mortgage) or pick-a-payment mortgage is the most versatile type of mortgage a homeowner can choose. These loans are very attractive to borrowers looking for an affordable monthly payment option or borrowers with a fluctuating monthly income; these loans are also sometimes called cash flow arms. The borrower who chooses this type of loan has four payment options they can choose from each month.

Option one is commonly known as a negative amortization payment. This is traditionally a very low payment offered at an initial teaser rate for the first year (between 1% and 2%) and thereafter tied to an index such as the COFI (Cost of Funds Index), the CODI (Cost of Deposit Index), or the COSI (Cost of Savings Index). This option allows for the principal of the loan to grow or negatively amortize. For example if the borrower pays the initial payment, say $1000, a month and the interest only payment (usually option two) is $1500 per month the difference between the two, $500, is added to the principal of the loan. Savvy borrowers closely monitor the level of negative amortization that they allow to accrue. If the amount of the principal reaches 110% of the original principal balance the loan is then recast and the borrower looses the choice of option one.
Option two is commonly known as an interest only payment. When the borrower chooses this option only the interest owed on the loan is paid. With this option a borrower's principal remains the same. Option two is normally no longer an option after seven years. This is because most or all of the interest due on a loan amortized over 30 years is paid off in the first seven years.

Option three is a standard 30 year amortized payment. This option allows for a small amount of principal as well as all the interest on a mortgage to be paid monthly. If a borrower makes one 30 year amortized payment a year an option arm will not be recast. The third option is the one most borrowers make and is usually carries a relatively fixed rate. The rate is determined by an margin (the bank's profit) added to the index to which the loan is tied.

Option four is the quickest way to pay off a mortgage. This option is based on a 15 year amortization schedule. While the most costly of the four options it is the option that saves the most money in the end. When borrowers choose a 15 year amortization for their loan they can save tens of thousands of dollars in interest.

An option arm is a very versatile loan. Borrowers should be sure to realize that the first option is a teaser rate, set for a fixed amount of time, and the initial payment will fluctuate after the first year. Smart borrowers should qualify for the 30 year payment, try to make the 15 year payment, and exercise the option for a lower payment only if cash is needed.

For more information on Mortgage Loans, please go to http://www.nicehousesite.com/ and get your FREE REPORT On Private Mortgage Insurance, what it is and why it's so important! Also, many good articles on Mortgages, Creditors, Brokers, Deeds of Trust, everything you must know to get a Mortgage in today's market.
Thank you, John Hurlbut

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

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Friday, January 8, 2010

Update Jan. 08 - 2010 All About "Mortgage Insurance" Information By Insurance Experts

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

FHA Loans

By Max Fischer

During the recent economic crisis, credit markets dried up and mortgages became difficult to obtain, especially for people with poor credit. Yet millions of Americans still want to achieve the dream of owning their own home. For homebuyers with a low credit rating, it can be difficult to figure out the best option; no one wants to get ripped off by a mortgage or loan scam. Fortunately, the federal government offers programs to obtain FHA loans that can help people with shaky credit to purchase a home or condominium.

What are FHA Loans?
Here is a brief overview of the FHA. In 1934, during the Great Depression, the U.S. Congress created the Federal Housing Administration (FHA). The purpose was to stimulate home construction, reduce unemployment, and offer loan insurance programs designed to provide affordable housing for people who would otherwise be unable to purchase a home. In 1965 the FHA was incorporated into of the Department of Housing and Urban Development's (HUD) Office of Housing. Today, the FHA assists homebuyers by providing mortgage insurance on loans made by lenders throughout the United States and its territories.

The FHA does not make loans. It does not build, buy, or sell houses. If you are buying a house or condominium, you do not apply directly to the FHA for a loan. You apply through an FHA approved mortgage lender such as a bank.

What does the FHA do? The FHA helps homebuyers who meet FHA loan guidelines by insuring their mortgages against default. FHA mortgage insurance provides the lender with protection against losses, and the lender bears less risk because if the homeowner defaults, FHA will pay a claim to the lender. This insurance, by reducing the lender's risk exposure, means lenders can approve mortgages for people who may otherwise have trouble getting a mortgage.

For the homebuyer with bad credit, the basic steps are these:

Apply to a FHA approved lender such as a bank or mortgage company.
The lender may ask that you apply for FHA mortgage insurance. Or, you may request that you be considered for FHA mortgage insurance.
To qualify for insurance, loans must meet established FHA loan guidelines.
The FHA investigates your finances and, if the risk is deemed favorable, insures the lending institution against loss of principal in case you fail to pay your mortgage.
If you meet FHA loan guidelines and are approved, you pay an insurance premium (generally one half of one percent) on the balance owed.

What makes FHA Loans Attractive?

With FHA mortgage insurance, the borrower receives several benefits:

A home appraisal by an FHA inspector
A lower interest rate on the mortgage than the lender might have offered without FHA mortgage protection.
The borrower is eligible for up to 96.5% financing, which means that down payments can be as low as 3.5% of the purchase price.
The borrower is able to fold the mortgage insurance premium into the mortgage.
FHA rules put limits on many of the fees that lenders charge in making a mortgage.

FHA Programs
There are a variety of FHA programs, the four below are basic FHA programs that can assist buyers who have poor credit.

Mortgage Insurance for One-to-Four Family Homes (Section 203(b)). This program provides mortgage insurance to protect lenders against the risk of default on mortgages to qualified buyers. This program may be used to finance the purchase of new or existing one-to-four family housing, as well as to refinance a mortgage.
Single-Family Rehabilitation Mortgage Insurance (Section 203(k)). This program allows the borrower to get just one mortgage loan, at either a long-term fixed or adjustable rate, to finance both the purchase and the rehabilitation of the property.
Single-Family Mortgage Insurance for Condominium Units (Section 234(c)). This program insures a loan to purchase a unit in a condominium building.
Insurance for Adjustable Rate Mortgages (Section 251). This program insures home purchase or refinancing loans that have adjustable interest rates.

If you have poor credit and meet the FHA loan guidelines, you may benefit from an FHA loan. It's worth investigating.

ConsumerFinanceReport.com features an extensive library of articles providing information, commentary, and guidance on a variety of personal finance topics, such as FHA loans. To view more articles that educate you on how to pay off debt, please visit our site.

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

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Monday, December 21, 2009

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

All About Private Mortgage Insurance - PMI

By Ron Beauchamp

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.

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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