2006-09-16 13:16:00 · 9 answers · asked by Pauline O 1 in Business & Finance ➔ Insurance
No, not at all, although some people might try to sell it you. I have had a mortgage for 7 years and no life insurance. The two are separate products, but lenders might try to sell it you by saying you have taken on extra debt and responsiblity with your mortgage and that could affect you in future if you are unable to pay or if your dependents are forced to take on the debt. Do your homework before you agree to anything, but in direct response to your question, no, you don't need it to get a mortgage.
2006-09-16 13:21:10 · answer #1 · answered by puzzledfemale! 3 · 0⤊ 0⤋
In the past, I've sold life insurance and offered mortgages and the answer is that you are not required to buy life insurance.
PMI or Mortgage insurance has nothing to do with this.
Those are to protect the lender, while your life insurance is to financially protect your loved ones from an unforeseen death that may happen.
When you get your mortgage, you may be bombarded with mailers for "mortgage protection".
These are pretty much life insurance policies that have the option for disability insurance. You are not required to buy mortgage protection either.
My personal suggestion is to get an online quote so that you can get quotes from multiple agents and pick the insurance and deal thats better for you. Having the ability to compare from different agents gives you more options, opinions, and can save you money.
2006-09-19 21:07:55 · answer #2 · answered by Charles Amith 2 · 0⤊ 0⤋
No. You do not have to have life insurance; however, you are required to take out an insurance policy on the house and if you live in a flood zone, then flood insurance also. Usually, it is figured into your monthly mortgage payment (M.I.P.P).
2006-09-16 20:20:09 · answer #3 · answered by Rhonda 7 · 0⤊ 0⤋
No. don't let them talk you into it. It's the most expensive insurance you can buy and a big profit maker for the mortgage company. If you think you mus have life insurance, buy a tern life policy.
2006-09-17 06:38:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You have to have homeowners insurance but no, no life insurance. I have a mortgage and no life insurance.
2006-09-16 20:24:01 · answer #5 · answered by blueyes2001 4 · 0⤊ 0⤋
No, its not necessary or a legal requirement.
The one who is selling you mortgage would try to forcefully sell it to you. Some banks insist on it and thrust it, some do it without even telling you.
If the value is high, it might be in your interests to look at it especially if you are the main souce of income.
2006-09-19 03:32:25 · answer #6 · answered by Ranbir 1 · 0⤊ 0⤋
Yes and no.
yes.
If you have any other loan other then a conventional loan.
By definition you must put down 20% of the purchased price. On 200,000/- house you will need 40,000/- down payment plus closing coast.
No.
If you can come up with the amount to get conventional loan.
2006-09-16 20:27:29 · answer #7 · answered by minootoo 7 · 0⤊ 0⤋
No, if you have 20% down, then you're not required by the lenders to purchase PMI. Also, if your mortgage is through a private party, and not a bank, you frequently don't have to purchase PMI.
2006-09-16 22:02:17 · answer #8 · answered by Anonymous 7 · 0⤊ 0⤋
no, i've had several mortgages never had life insurance.
2006-09-16 20:19:19 · answer #9 · answered by CYNTHIA R 2 · 0⤊ 0⤋