Mortgage insurance helps protect lenders from the risk of homeowners defaulting on their mortgage payments. It is usually required if the borrower has less than 20% of the home's purchase price as a down payment.
Mortgage insurance is usually paid as part of the borrowers monthly mortgage payment and is typically between 0.3% and 1.5% of the loan amount.
The cost of the mortgage insurance may also be rolled into the loan amount. Mortgage insurance protects the lender if the borrower fails to pay off the loan, allowing them to receive the unpaid amount from the insurer.
Q&A
Q: What types of mortgage insurance do you offer?
A: There two types of mortgage insurance: conventional mortgage insurance and government-sponsored mortgage insurance. Conventional mortgage insurance is offered by private mortgage insurers, while government-sponsored mortgage insurance is offered by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).
Q: What are the benefits of having mortgage insurance?
A: Mortgage insurance provides several benefits, such as protection for lenders in the event of borrower default, lower down payment requirements, and lower interest rates. Mortgage insurance also helps borrowers qualify for a loan by reducing the amount of money needed to be paid upfront.
Q: How much does mortgage insurance cost?
A: The cost of mortgage insurance is based on the loan amount and down payment, and can range from 0.5% to 2.15% of the loan amount.
Key benefits of life insurance
Financial security for your loved ones: Life insurance provides a death benefit that can help your loved ones cover expenses such as funeral costs, outstanding debts, and ongoing living expenses.
Estate planning: Life insurance can be a valuable tool in estate planning, helping you ensure that your assets are distributed according to your wishes.
Tax advantages: Depending on the type of life insurance product you choose, there may be tax advantages that can help you save money.
What is the legacy you want to leave behind? To learn more, give us a call and request this FREE National Association Insurance Commissioner's Consumer Guide today. You'll be glad you did.
