Posts Tagged ‘mortgage’
Do You Need Mortgage Insurance?
April 10th, 2010 | Author: admin
When you buy a car you need auto insurance and just like that when you buy a mortgage you need mortgage insurance.
There are two types of mortgage insurance available one that protects the lender and one that protects you. If you have less than a twenty percent down payment the insurance provider will reimburse the lender should you default on the mortgage. You enjoy the benefit of this facility at the cost of a mortgage insurance premium that you either pay in one lump sum when you enter the mortgage or it is blended into the monthly installments on your mortgage.
The second type of mortgage insurance is to cover you should you be unable to pay your mortgage due to death or health issues. If you should die and have the insurance your balance outstanding is paid in full.This is one of the more popular types of insurance and your mortgage broker can advise you on the proper channels to acquire it.
The most common type of mortgage insurance is offered through brokers. There is no mortgage insurance that covers all diseases so you will need to investigate to find out what protection you are really buying.