isn't mortgage insurance for if you die, the loan will be paid off? if so wouldn't life insurance do the same, so why is mortgage insurance needed. Must you have it or is it just a option?
2006-08-31 10:39:22 · 8 answers · asked by WELDER 2 in Home & Garden ➔ Other - Home & Garden
You have to have PMI; it's to protect the lender, not you.
Most, but not all, lenders will remove their PMI requirements if:
1. The loan to value ratio on your loan is 80% or less. (Some require 75% or another LTV).
2. You have made your payments on time for two years.
2006-08-31 10:44:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Mortgage insurance is rerquired fo first time buyers and or FHA approved buyers. It protects lender from default. Once your credit history is established with prompt, not late mortgage payments for a period of 1 to 2 years, you may discontinue it with lender approval. Lender will not tell you this as they receive a percentage of payment. Check it out at your bank or Federal Housing Authority. Much Luck!
In addition, you must have home owners insurance for house damage protection
2006-08-31 10:50:30 · answer #2 · answered by DEB 2 · 0⤊ 0⤋
If the lender perceives you as high risk, it may be a requirement to get the loan. One way around it is to have a second mortgage instead (instead of $300 on one mortgage, you could have $200 on one, and $100 on the second). Avoid PMI if you can.
2006-08-31 11:39:40 · answer #3 · answered by Frank B 2 · 0⤊ 0⤋
No, you are actually thinking about "title insurance". Title insurance insures the buyer of the home that the land and home have good marketable title. Title problems can arise in real estate and cause a new home owner/buyer hundreds or thousands of dollars in court costs. There are two kinds of policys. Mortgagees policys for the lender/bank. And owners policy for the new owner. These policys will cover you if anyone ever comes out of the woodwork (examples: previous lenders, previous owners, heirs of previous owners, errors in previous deeds, unknown easements, etc.) and claims an interest in the land upon which your home sets. This use to be refered to as abstracting. Its now Title Insurance. It has nothing to do with home insurance. If Title problems arising after the buy your home then the underwriter who issued your title insurance policy will have to cover all court costs for you. They will have to provide you with information on easements, set-back lines, property restrictions, etc. A good website to go to is Southern Title Insurance.com. Hope this helps. If you have any more questions then please e-mail me at stephanierudder@yahoo.com. I am an agent.
2006-08-31 10:57:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you dont have to get mortgage insurance but it is a good saftey precaution, i have and my other family members have it too. when my father passed away suddenly a few years ago, that insurance paid off the mortgage and saved my mother a heartache of having a healthy mortgage to deal with, trust me, its a very worthwhile minimal expense added to your mortgage payment
2006-08-31 10:46:32 · answer #5 · answered by intrepid6121224 1 · 0⤊ 0⤋
Not mandatory. Life insurance will suffice if one wants it to be used for that purpose.
In most cases mortgage ins. is more costly than
Term Life, although they pitch payment coverage in case of illness.
Same with credit cards.
High profit.
2006-08-31 10:50:24 · answer #6 · answered by ed 7 · 0⤊ 0⤋
maybe if u happen to lose ur job (GOD forbid) then they'll take over ur monthly payment. it's a sweet deal if it's avaible especially if one is a seasonal worker or if the company closes down or an illness.
as for life insurance, i guess they would take over only after the insured person passes away.
2006-09-03 18:56:07 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Sometimes you are required to take out mort ins if your ratios are not good (loan to value, income or very large jumbo mortgages).
2006-08-31 11:01:26 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You do not have to get it, but it is a good idea.
2006-08-31 10:45:36 · answer #9 · answered by EPnTX 4 · 0⤊ 1⤋