Mortgage Insurance is often seen as a negative but in reality, it has helped many people to purchase a home when otherwise, they could not. The article from HomeKeepr does a great job of explaining what mortgage insurance is, when you need it, and when you can have it removed from your mortgage. Enjoy the article and give me a call with any questions you have or if you have other real estate needs.
Source: home.homekeepr.com | Re-Post Houterloot 10/11/2018 –
Whether you’re in the process of buying your first home or you’ve been a homeowner for years, there are few phrases that hit right to the bone like “mortgage insurance.” Why, you’re not sure entirely, but lots of people indicated that it was terrible and you were going to regret it.
As usual, the truth lies somewhere closer to the middle. Mortgage insurance is not your enemy, but it can be a costly surprise if you’re not prepared. Let’s dive into this hot-button topic.
What Exactly is Mortgage Insurance?
Mortgage insurance is a type of coverage that your lender will take out on your loan to help shield them against loss should you default. They generally only require it if you have less than 20 percent down and often, this monthly payment will drop off once you’ve paid your home loan down to the point that your house has about 22 percent in equity versus its mortgage.
To be clear, this insurance does not cover you — at least not directly. In the case of default, the bank gets the check, but you get something, too. In many states, even recourse states, the mortgage insurance can be enough to prevent the bank from coming back on you for the difference between what you owe and what it was able to recover at a public sale.
Posted on October 11, 2018 at 2:19 pm by Tim Houterloot