MORTGAGE INSURANCE

It is common for the borrowers to deal with higher monthly repayments if they pay less than 20 percent down payment percent for a new home. That is why a mortgage policy designed to offer protection to lenders with no job or suffering from severe illness, in case the borrower dies. It ensures one keeps with the monthly repayments in a hassle-free manner. Just like other policies, a policyholder needs to pay premiums to prepare for the unwanted event. The premiums of such insurance add to the regular monthly loan payment.

The purchase of mortgage insurance depends upon some factors – your loan, financial status, and bank. If a borrower is paying less than 20% down payment, then lenders insist on the buyer to purchase mortgage insurance.

Ins
• This insurance comes with flexible payment options and better interest rates.
• One can also keep up with the mortgage insurance for long and save the premiums. It can be further transferred to repay the debts of another property.
• It offers great peace of mind at the time of unemployment.
• Allows loved ones to stay worry-free and live in the property.

Outs
• When the loan repayments decrease, the benefits associated with mortgage insurance also drop.
• Not cover all the needs, it protects when one is falling behind the payments.
• The premiums of this insurance type can prove to be expensive.

The best way to educate you about the mortgage insurance and its premiums is to contact an expert advisor. A knowledgeable agent helps you decide what fits best as per your situation by answering all the queries you might have.