admin answers:

Mortgage insurance is also called decreasing term. It’s for the remainder of the mortgage, if you die, and only pays the payoff. It costs MORE than regular term.

So, you’re BETTER off if you buy a level term policy – it’s cheaper, and it DOESN’T decrease each year.

There’s ALSO disability coverage. It’s a different policy, and depending on your ages/health, it can be pretty expensive. Unemployment is NOT a private coverage in the us, you can ONLY get it through your state unemployment office.

Talk to your agent that does house and auto – ask him if he sells level term coverage, and/or disability coverage. If he doesn’t, ask him for a LOCAL referral. IF you’re with a direct writer, ask a neighbor or friend who their local agent is.

I really really strongly recommend dealing with a local agent. If you can’t find one, these guys are pretty good, and licensed in most of the 50 states: www.zanderins.com

admin answers:

Mortgage insurance is a policy paid for by you that guarantees the lendor that if you shoudl default on the loan that they will at least get repaid what the loan amount is.

This is required on all loans where the downpayment is less than 20% of the price of the house. The reason for this is in case the value of the house drops and you end up owing more on the house than it’s worth and then defaulting on the loan.

After you have carried PMI for 2 years, you can have the ratio re-evaluated and if you owe less than 80% of what the property is worth, then you can drop PMI. You will have to pay for an appraisal out of your own pocket, though (about $300-400), so keep up with the market in your area so you have an idea of what it is worth.

If your appraisal comes back and shows that the loan is less than 80% of the appraised value, mail a copy of the appraisal and a request to the mortgage company to drop the PMI. You must, however, carry it for at least 2 years.

PMI will automatically be dropped once the mortgage balance reaches 80% of the original appraisal on the house. Federal law requires this. However, if your house is appreciating at a fast rate, you will be wise to hire an appraiser and have it dropped. The mortgage company only keeps up with the balance on the mortgage. They do not keep up with the increase in the value of the property.

admin answers:

You should not be if you say the magic formula truth in lending act .

admin answers:

You have to have PMI; it’s to protect the lender, not you.

Most, but not all, lenders will remove their PMI requirements if:

1. The loan to value ratio on your loan is 80% or less. (Some require 75% or another LTV).
2. You have made your payments on time for two years.

admin answers:

UNLESS you put down 21% of the house costs you will be required to pay Principal Mortgage Insurance PMI . This pays back the outstanding principal (not value) to the mortgage holder not you. It is a reasonable insurance fro them. A ‘Mortgage Insurance’ that covers your mortgage is a rip off. Get term life only – better deal.
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