2007-05-26 07:07:31 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are at least two different things you could be calling mortgage insurance. The first would be insurance that would protect the bank in case they have to foreclose on you and in the process they lose money.
Sometimes a mortgage company requires you to buy this as a condition of them providing you a loan. There are ways around this even without putting 20% down but those also incur extra costs. Compare them in your case and decide which is best.
The second thing you could be calling mortgage insurance is life insurance designed to pay off your home loan in case you die. This is not required by the bank.
I think this is always to expensive. You may need life insurance to protect your spouse, but you can buy term life insurance for the same dollar amount at a lower price and accomplish the same protection.
2007-05-26 08:07:57 · answer #1 · answered by glenn 7 · 1⤊ 0⤋
No! Mortgage insurance is normally a terrible deal. You can get a term life policy that will pay a fixed amount for a specified number of years for a much lower premium unless you are in absolutely terrible health.
The benefit of a MI policy drops with the mortgage balance although the premiums stay fixed. A term policy for a stated number of years has both a fixed benefit amount AND fixed premiums.
I've had mortgates for over 30 years now and have NEVER had MI or needed it.
2007-05-26 07:24:24 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
NOOOOOOOOOOOOOOOOOO. Most banks have gotten rid of the PMI even if you don't put donw 20%. Anyone who is trying to sell you that is ripping you off.
2007-05-26 07:15:45 · answer #3 · answered by Ponch 3 · 0⤊ 1⤋
hi check this link its good
http://insuranceadviceforyou.blogspot.com/
.
2007-05-29 22:26:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋