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Mortgage Insurance In The UK

Aug 7, 2008
Do I have to pay Private Mortgage Insurance (PMI)? When you acquire a mortgage with less than a 20% down payment, you may be required to buy private mortgage insurance. This coverage helps protect the lender in case you can't make your payments and default on the loan. Mortgage insurance makes it possible for people with small down payments to buy the home of their choice.First of all, let's make sure that we mean the same thing when we discuss ""mortgage insurance."" Mortgage insurance should not be confused with mortgage life insurance, which is designed to pay off a mortgage in the event of a borrower's death. Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending.

Q Well, would it not be easier to buy my insurance direct from the bank when I obtain my mortgage? A Instead of purchasing creditor insurance from the bank it is better to purchase private insurance from a licensed insurance agent. Creditor insurance has many restrictions and limitations. From a mortgage broker point of view, we are very concerned when your insurance is tied to your mortgage lender. What do you do if you want to switch to a more competitive lender at your next mortgage renewal? When you switch you will lose your creditor insurance.The purchase of flood insurance is mandatory for all Federal or federally-backed financial assistance for the acquisition and/or construction of buildings in high-risk flood areas (Special Flood Hazard Areas or SFHAs).

Q Well, would it not be easier to buy my insurance direct from the bank when I obtain my mortgage? A Instead of purchasing creditor insurance from the bank it is better to purchase private insurance from a licensed insurance agent. Creditor insurance has many restrictions and limitations. From a mortgage broker point of view, we are very concerned when your insurance is tied to your mortgage lender. What do you do if you want to switch to a more competitive lender at your next mortgage renewal? When you switch you will lose your creditor insurance.When you acquire a mortgage with less than a 20% down payment, you may be required to buy private mortgage insurance. This coverage helps protect the lender in case you can't make your payments and default on the loan.

What is Private Mortgage Insurance (PMI)? PMI or Private Mortgage Insurance is normally required when you buy a house with less than 20% down. Mortgage insurance is a type of guarantee that helps protect lenders against the costs of foreclosure. Private mortgage-insurance companies provide this insurance protection. It enables lenders to accept lower down payments than they would normally.With mortgage insurance, the face amount decreases over time in step with the projected decrease in the mortgage balance. Although the death benefit decreases, the premium is usually level in amount. While it seems like a convenient option, the dollar cost per $1,000 of coverage is usually higher than just straight term insurance. Do some comparison shopping to see.

What is PMI? Can I get rid of the PMI on my loan? PMI or Private Mortgage Insurance is normally required when you buy a house with less than 20% down. Mortgage insurance is a type of guarantee that helps protect lenders against the costs of foreclosure. This insurance protection is provided by private mortgage-insurance companies. It enables lenders to accept lower down payments than they would normally accept.You may be required by your lender to buy flood insurance if you have a Federally backed mortgage loan and the building is located in a high-risk flood area. And your lender may, at its own discretion, require that you buy flood insurance even if your building is outside the high-risk flood area. You may also be required to buy flood insurance as a condition of receiving Federal disaster assistance after Federally declared flood disaster.

What do you offer? We offer consumers to receive up to three FREE no-obligation quotes from our qualified service providers. If you are looking for a mortgage, insurance, buy and/or sell real estate, legal, accounting, construction or other types of services, click here to submit a service quote request.Most likely your mortgage company is offering something called ""mortgage protection life insurance"" or ""decreasing mortgage protection"".
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