What is Mortgage Insurance?
Mortgage insurance is a policy that protects
lenders against some or most of the losses that
result from defaults on home mortgages. it's
required primarily for borrowers making a down
payment of less than 20%.
How
does mortgage insurance work? Is it like Home
or Auto Insurance?
Like home or auto insurance, mortgage insurance
requires payment of a premium, is for protection
against loss, and is used in the event of an
emergency. If a borrower can't repay an insured
mortgage loan as agreed, the lender may foreclose
on the property and file a claim with the mortgage
insurer for some or most of the total losses.
Do
I need Mortgage insurance?
You need mortgage insurance only if you plan
to make a down payment of less than 20% of the
purchase price of the home. Ask your lender
for details.
Answers
to 15 common questions regarding homeowners
insurance.pdf
Insurance Rating Service
Netquote.com
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Tips to Keep Your Home
Safe
Don’t give repairmen a key, and don’t give
people fixing your car your whole set of keys.
Your house keys can be easily
duplicated and your address
can usually be obtained from your
license plate number.
You may also want to install an alarm if the
house doesn’t already have one. If you move
into a new house with an alarm, make sure you
get accurate (written) directions on how to
operate it.
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Homeowners
Insurance Tips
Know
your home's value, it is essential to
establish your home's replacement cost.
A local builder can provide the best estimate.
Don't
just look at the price. A low price isn't
a bargain if the insurer takes forever
to service claims. Check the insurance
company's financial stability.
Review
your policy periodically to make certain
your policy reflects your current home
inventory.
Avoid
Disasters
It
goes without saying, but you still have
to check: Make sure the house you're
considering buying is not in a high-risk
area for natural disasters, like earthquakes,
hurricanes, tornados and wildfires.
Find out what you can and can't insure
against. If in doubt, ask around. The
neighbors will tell you a lot of things
about the area.
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