Reply With QuoteWhen you do, make sure to read the contract. And when I say read, include the fine print. I've heard of cases where the claims were denied simply because they didn't mention everything.Originally Posted by Chuck
You can go your insurance company and ask if they have this kind of product. Further you can also go online and look for different offers.
In essence, mortgage insurance mitigates the risk. Here's what usually happens. First a homeowner wants to buy a home but can't afford a deposit. So he takes mortgage insurance and is able to put down a small deposit. The lender can then buy coverage on your mortgage.
Last edited by Clementine; 04-29-2011 at 11:33 AM.
When you do, make sure to read the contract. And when I say read, include the fine print. I've heard of cases where the claims were denied simply because they didn't mention everything.
This is becoming a really interesting topic.
Thanks for this piece of advice.
Hold on a minute. Let me clarify. A mortgage insurance isn't really an investment right? Its more of a personal protection. Am I correct?
From what I can understand, yes.
Mortgage insurance, also known as mortgage protection insurance, is an insurance policy that protects lenders against loss, should a borrower default on their mortgage.
If a borrower is unable to pay their mortgage due to ill health, injury, or redundancy, then mortgage insurance will cover payments, usually for a set period of time. One thing to be aware of is that these types of policy do not kick in straight away - they have a holding period of 30-90 days.
I have not heard of Banks lending more to those taking out mortgage insurance - this is a new one to me
Previously a big chunk of mortgage lending activity was spoken for by people switching, moving or extending their mortgages. This accounted for as much as 40 per cent of mortgage enquiries, although not 40% of actual borrowing when you factor in repayment of existing loans. Nevertheless, with people drawing on increases in equity to repay their consumer loans, remortgaging has been big business during the mortgage boom.
And whereas Halifax, C&G and Abbey mortgage customers face (admittedly mild) payment shocks – jumps of around 3 to 4 per cent interest – it turns out that some A&L customers will be sitting pretty on 1.49% for a while yet.
Parent company Barclays is keen to take on its fellow High Street giant, whose First Direct and HSBC-branded tracker mortgages have been topping many "best buy" tables for much of the year.The new tracker mortgage, although 0.4% more expensive than its lowest-rate tracker at 2.79%, has an advantage that will appeal to many cash-pressed remortgagers and buyers: it costs nothing to apply.
mortgage insurance is really more on personal protection. it protects the lenders against a great loss.
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