Monthly Archives: November 2017

Why Do You Need Mortgage Insurance

There are two types of mortgage insurance available that protect the creditor and the bank that protects you. If you have less than twenty percent down payment, the insurance provider will replace the creditor if you fail to pay the mortgage. This is a law that is set at the federal level and applies to all mortgages. You enjoy the benefits of this facility at the cost of a mortgage insurance premium that you can pay at once if you enter a mortgage or mixed into monthly installments for your mortgage.

The second type of mortgage insurance is to cover you if you cannot pay your mortgage due to death or health problems. If you must die and have insurance, your balance is fully charged. This is one of the most popular types of insurance and your mortgage broker can tell you about the right channel to get it. Another type of insurance that gets steam is one that will help offset your monthly payments if you become disabled due to illness or loss of your job without your own negligence.

This type of mortgage insurance is available through your insurance broker and mortgage broker. All lenders should allow you to use insurance and you must sign a disclaimer that you actually know of your choice to have this type of protection. The most common type of mortgage insurance is offered through a broker and is called the “MPP” Mortgage Protector Plan. You will pay a monthly premium for this facility but if you need a profit, you will be happy if you sign up for them when you do.

While searching for insurance stores around because the premium you pay will vary greatly on your current medical condition and any lifestyle choices that can put you at greater risk like smoking, heart disease. Make sure you fully understand what insurance needs and you are fully aware of what conditions it covers. There is no mortgage insurance covering all the diseases so you need to investigate to know the protection you actually bought.

For some people who feel that they do not need to buy mortgage insurance, your mortgage broker will be able to give you some advice on how to avoid mortgage insurance when buying a property.