What are your thoughts on mortgage insurance?
I am in the market for home and read about the mortgage insurance. It is good and what is different and homeowners insurance?
Categories: mortgage insurance Tags: insurance, mortgage, thoughts
I am in the market for home and read about the mortgage insurance. It is good and what is different and homeowners insurance?
Categories: mortgage insurance Tags: insurance, mortgage, thoughts
What is mortgage insurance? seems like a waste of money…I would rather use the money to pay off my house faster…
UNLESS you put down 21% of the house costs you will be required to pay Principal Mortgage Insurance PMI . this pays back the outstanding principal (not value) to the mortgage holder not you. It is a reasonable insurance fro them. A ‘Mortgage Insurance’ that covers your mortgage is a rip off. get term life only – better deal.
visit daveramsey.com to learn what bankers pray you never ever learn or apply in your life. how to own your money.
read ‘house buying for dummies’ b4 you sign any thing. fixed rate only 30 yrs or less equal to 1 week take home pay for P&I.
or we get to visit you.
Mortgage insurance is just another safeguard for your mortgage company in case you default on the loan…it does nothing to protect you. Ideally, you don’t want to have mortgage insurance attached to your monthly payment, but unfortunately it’s a manditory charge until the equity in your property reaches 20% of the original purchase price. Therefore, having 20% to put down on your purchase not only helps you get a lower interest rate, but it also eliminates the mortgage insurance, which can add hundreds of dollars to your monthly payment depending on the price of the home. Of course there are certain loan programs out there that don’t require mortgage insurance, but your credit has to be really good.
Mortgage insurance insures the lender if you default on your mortgage. It offers no protection to you and essentially you are throwing your money away. It is now, finally, tax deductible. You should purchase the house with a first and second mortgage to avoid mortgage insurance. You would then have 80% of the purchase price on the first loan and the remaining 20% on the second loan. Therefore all of the money you pay per month is going toward your house instead of making the lender feel more comfortable about lending you money. You should email me and I can help you find the right program to purchase this home.