Mortgage Insurance Why You Should Buy
Saturday, February 17th, 2007Mortgage insurance is one of the few types of insurance products that doesn t underwrite it s premiums based on individual default risk, rather the size of the borrower s mortgage and the amount of money put down determine the mortgage insurance quote. Mortgage insurance is an insurance policy that guarantees that a mortgage will be paid in the event of the mortgagee s death, default, or disability. Mortgage insurance is insurance protection that “kicks in” should you ever find yourself unable to make your mortgage payments because you are out of work or unable to earn an income due to health, disease or illness. Mortgage insurance is also arranged by the lender, not the borrower, although the borrower pays for it.
The problem with private mortgage insurance is that it raises your monthly payment and, unlike the interest on a traditional mortgage, PMI is not tax deductible. It s important to understand that the primary and only real purpose for mortgage insurance is to protect your (more...)
