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No, sorry! It just means that if you lose your home to the bank and they can't sell it for what your mortgage is worth (plus expenses), the BANK won't lose by it!
So you pay the BANK'S insurance premium to protect THEIR interests, not yours.
You can purchase 'Income Protection' insurance for yourself, so that you should never be in a position to lose your home, even if you do lose your livelihood. It will be expensive, but unless you are certain that your home is worth at least 25% more than your mortgage, you will lose out if you are obliged to sell (and letting the bank sell it for you will cost you dearly!).
What else can I help you with?
Does my mortgage cover my insurance payments?
No, your mortgage typically does not cover your insurance payments. Insurance payments are separate from your mortgage and are usually paid directly by you to the insurance company.
Am you considered a homeowner if you are still making mortgage payments?
Yes
How can a new homeowner use an endowment mortgage to their advantage?
There are many ways that a homeowner could use an endowment mortgage to their advantage. The biggest advantage is to be able to make less mortgage payments.
Do Mortgage insurance premiums payments have be escrowed by the lender?
Yes, Mortgage Insurance Premiums Payments do have to be es-crowed by the lender.
How do you know if your lender bought your mortgage as a bad debt?
Perhaps if they bought it after you defaulted or had a history of late or missed payments.Perhaps if they bought it after you defaulted or had a history of late or missed payments.Perhaps if they bought it after you defaulted or had a history of late or missed payments.Perhaps if they bought it after you defaulted or had a history of late or missed payments.
What is a pre foreclosure for?
A pre-foreclosure is the stage in the foreclosure process that occurs after a homeowner has defaulted on their mortgage payments but before the lender officially takes possession of the property. During this period, the homeowner typically receives a notice of default, signaling the need to either catch up on missed payments or negotiate with the lender to avoid foreclosure. It often presents an opportunity for homeowners to sell the property and pay off the mortgage or for potential buyers to purchase the property at a lower price.
What are the benefits of having MPI (Mortgage Protection Insurance) for homeowners?
Mortgage Protection Insurance (MPI) provides financial security for homeowners by covering mortgage payments in case of unexpected events like death, disability, or job loss. This insurance helps protect the homeowner's investment and ensures that their family can keep the home even during difficult times.
How do banks calculate mortgages and mortgage payments?
Banks will often use the term of the loan, the downpayment, the total cost of the home, your personal interest rate, yearly property taxes as well as yearly homeowner's insurance to calculate the mortgage and the mortgage payments. There are many sites that have mortgage calculators, which include many of the variables that you can enter to figure out exactly what your payment would be.
What its the best description of foreclosure?
it ends all legal rights of a homeowner if mortgage payments are not made.
Is mortgage a fixed expense?
Yes, a mortgage is generally considered a fixed expense because it involves regular, predictable monthly payments that remain consistent over the life of the loan, assuming a fixed-rate mortgage. These payments typically cover both principal and interest, and can include property taxes and homeowner's insurance if they are escrowed. However, if you have an adjustable-rate mortgage, your payments may change over time, making it less predictable.
How does private mortgage insurance protect borrowers in the event that they are unable to make their mortgage payments?
Private mortgage insurance (PMI) protects borrowers by covering the lender's losses if the borrower defaults on their mortgage payments. This insurance allows borrowers to qualify for a mortgage with a lower down payment, but it does not protect the borrower directly.
What is the difference between mortgage and reverse mortgage?
A mortgage and a reverse mortgage are both types of home loans, but they work in opposite ways. A mortgage is a loan that helps a borrower purchase or refinance a home. The homeowner borrows money from a lender and repays it through monthly installments, which include principal and interest. Over time, as the borrower makes payments, the loan balance decreases, and home equity increases. If the borrower fails to make payments, they risk foreclosure. A reverse mortgage, on the other hand, is designed primarily for homeowners aged 62 or older who want to convert their home equity into cash. Instead of making monthly payments to the lender, the homeowner receives payments from the lender—either as a lump sum, monthly payments, or a line of credit. The loan balance increases over time as interest accrues, and repayment is not required until the homeowner moves out, sells the home, or passes away. However, the homeowner must continue paying property taxes, insurance, and maintenance costs to avoid foreclosure. In simple terms, a mortgage requires the homeowner to pay the lender, while a reverse mortgage allows the homeowner to receive payments from the lender using their home equity.
