fbpx
Home Insurance and Mortgage Insurance
Many homeowners with mortgages pay for both types of insurance but only one of them protects the owner. Homeowner’s insurance covers damage to your property and losses from fire, burglary, vandalism, and other named natural disasters. When an insured has a loss, they file a claim with the insurance carrier which would be subject to […]
Home Insurance and Mortgage Insurance
Many homeowners with mortgages pay for both types of insurance but only one of them protects the owner. Homeowner’s insurance covers damage to your property and losses from fire, burglary, vandalism, and other named natural disasters. When an insured has a loss, they file a claim with the insurance carrier which would be subject to […]

JXDPSJdZoE2W8O4UEzQWLA.jpg

Many homeowners with mortgages pay for both types of insurance but only one of them protects the owner.

Homeowner’s insurance covers damage to your property and losses from fire, burglary, vandalism, and other named natural disasters. When an insured has a loss, they file a claim with the insurance carrier which would be subject to the deductible mentioned in the policy.

If the homeowner has a mortgage on the property, the lender will require that the borrower carry adequate insurance on the property and name the lender as an additional insured. This protects the lender that the home will continue to be sufficient collateral for the loan in case of a loss.

Mortgage insurance is not like homeowner’s insurance in that it is solely for the protection of the lender if the borrower defaults on the loan. Usually, lenders require mortgage insurance on any loan greater than 80% loan-to-value. Occasionally, they may require it on some loans less than 80% based on their underwriting requirements and possibly, from anticipated risk from the borrower.

VA loans do not require mortgage insurance. Conventional lenders must remove the mortgage insurance when the loan amortizes below the stated percentage. FHA loans require mortgage insurance for the life of the loan.

When a property appreciates so that when the owners refinance, the loan-to-value ratio is less than 80%, no mortgage insurance would be required. This can be a strong motivation for some owners to refinance to save the cost of the mortgage insurance.

Mortgage insurance premiums are not regulated by law like homeowner’s insurance is in most states. Most buyers are concerned about the interest rate on their mortgage, but few question the amount of the mortgage insurance premium.

The homeowner can select the carrier for his homeowner insurance, but the lender determines the carrier for the mortgage insurance. When you are interviewing lenders, the type of insurance that will be required and the price of the mortgage insurance should be included in the discussion.

LIST OF BLOGS

Rental Ownership Woes

Rental Ownership Woes This is especially real if you are thinking about going the path of a rental residential or commercial property owner. It would be smart to think about these things nevertheless before you purchase your very first rental residential or commercial...

Making Sense of Home Improvements: What Adds Value?

Before diving into renovation projects, it's important to understand which upgrades are likely to boost your home's value and which ones may not yield a significant return on investment. While certain improvements can enhance your home's appeal and attract potential...

Embellishing to Sell a House by Meeting Three Key Needs

Embellishing to Sell a House by Meeting Three Key Needs Particular marketing projects are no longer simply for autos and designer clothing. Targeted marketing methods are now used to homes that are for sale. Embellishing your home in a particular way to help with the...

1031 exchange tax deferred advantages are difficult to overlook

1031 exchange tax deferred advantages are difficult to neglect Area 1031 of the Internal Revenue Code includes perhaps among the most effective arrangements of the tax code genuine estate financiers ... the 1031 tax exchange. Numerous extremely effective investor have...

Lease Options or Rent to Own?

Lease Options or Rent to Own? Discovering a rent-to-own home is among the numerous methods somebody with bad or no credit can purchase a home. You will frequently discover them called names like lease/options, lease with alternative to purchase, rent purchase, lease 2...

Wave “Goodbye” To Uncle Sam’s Taxes

Wave "Goodbye" To Uncle Sam's Taxes There exists an extremely effective wealth-building method that has actually been around given that 1921, and is still utilized by the nation's most smart investor. Incredibly, the IRS made this tax deferral possible. In other...

Bottom Line Is That You Want It Sold – Tips To Get It Done

The realty market has actually been depressed in a lot of locations of the nation for the last couple of years. Noting your home for sale in today's market needs you to evaluate just how much similar homes in your location are costing and make modifications based upon...

Excellent Tips For Buying Real Estate In Today’s Market

Purchasing a home can look like a challenging procedure, however that is just real if you do not have the requisite understanding to deal with the procedure like a pro. This post consists of various pointers that will assist you effectively browse the home purchasing...

Painting and Decorating

Painting and Decorating Painting, embellishing and other methods to make certain your home remains in an excellent condition to offer. Home selling has actually ended up being an extremely competitive market, and though individuals are desperate in some locations to...

RECENT POSTS

Rental Ownership Woes

Rental Ownership Woes This is especially real if you are thinking about going the path of a rental...

Painting and Decorating

Painting and Decorating Painting, embellishing and other methods to make certain your home remains...

ABOUT  TWENTY
THREE HOMES

The Twenty Three Homes are one of the premiere real estate groups locally, nationally and internationally, specifically dealing with high-end properties and exclusive clientele. Partner with Keller Williams Twenty Three Homes are full service real estate experts whose clients benefit from the custom tailored, hands on service while receiving all the exclusive amenities and resources of one of the most established and respected firms in the business.

GET IN TOUCH