0
Does the lender get mortgage insurance to cover the loan and you get the homeowners?
Wiki User
∙ 12y ago
No, that's not how it works.
Mortgage insurance is to cover you defaulting on the loan, and you're expected to pay it.
Homeowner's insurance covers the home itself in case of accidents. If they pay off the value of the home because it was totally destroyed, you're still responsible for the loan before you get whatever's left over.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Does homeowners insurance cover foreclosure?
No. Homeowners Insurance does not cover the owners default on a mortgage note.
Does homeowners insurance pay your mortgage if you become disabled?
Homeowners insurance does not cover your mortgage if you become disabled. You would need to obtain mortgage protection insurance for that.
What is a mortgage escrow?
An escrow account is a secondary fund associated with a mortgage that covers the cost of home insurance during the period of the mortgage. The homeowners' mortgage payments typically cover both the amount due on the mortgage payment as well as the amount due on the escrow account.
Where do you find the best prices on mortgage insurance?
Do you have another life insurance of sufficient amount to cover mortgage, then you do not need extra mortgage insurance. Any way it is also a simple life insurance policy, just named differently to get more business. It is not essential. Life insurance is not private mortgage insurance (PMI) PMI covers the lender if you default on the loan. Basically you are paying for insurance for the lender. Once the loan is 80% or below the property value the lender will usually cancel the requirement for PMI. You do have the right you choose your own private mortgage insurer, as long as they are approved to do business with your lender. You can ask your lender for the premiums of each of their carriers and decide for yourself which you want to use. The prices from various carriers are virtually the same for borrowers with good credit, however if you have poor credit the rates can vary widely and it is worth your time to as the question.
What mortgage insurance can you cancel after paying it for 2 years?
Do u really need mortgage insurance? Do u have any other life insurance policy? If yes, then that policy is sufficien. Just check that its amount is enough to cover your CURRENT mortgage amount. feel fre to contact back. Answer Mortgage insurance is usually required by the lender if the loan is in excess of 80% of the loan value of the property. A mortgage insurer is usually an investor or a group of investors. In most states there is no requirement for mortgage insurance when the loan is 80% or below the value of the property. A simple letter to the lender will usually get the mortgage insurance cancelled. If your home is in an area where values are increasing rapidly, then it is quite possible that you will have enough equity to drop the MI after only 2 years. Contact your lender
What type of account is held by the mortgage lender and used to cover property taxes and homeowners insurance?
escrow
Does homeowners insurance cover foreclosure?
No. Homeowners Insurance does not cover the owners default on a mortgage note.
Does homeowners insurance pay your mortgage if you become disabled?
Homeowners insurance does not cover your mortgage if you become disabled. You would need to obtain mortgage protection insurance for that.
Will Homeowners insurance reimburse for mortgage during renovation?
NO, your homeowners policy will cover 'additional living expenses' but will not cover your mortgage.
Does homeowners insurance cover your mortgage if you are laid off?
No. This is not what homeowners insurance is for. Homeowners insurance is to pay for physical damage to your home and contents.
Will homeowner's mortgage insurance pay for failing drainage pipes under foundation?
Mortgage InsuranceNo, Mortgage Insurance is NOT Homeowners Insurance. Mortgage Insurance does not cover your home at all.Mortgage Insurance covers your finance note, not your home.
If homeowner dies does homeowner insurance cover it?
Homeowners insurance covers the house itself should it be damaged. Many of the policies include liability insurance so that if anyone is injured there you have protection. There are some types of mortgage insurance that cover the remaining mortgage should the owner die. But, if the lender does not require it due to a low down payment, one would have to specifically buy that.
Which type of account is held by the mortgage lender and use to cover property taxes and homeowners insurances?
Some mortgage contracts contain a provision for an "Escrow Account".
Does homeowners insurance cover your child damaging the neighbors vehicle?
No, Your homeowners insurance does not cover vehicle damage. That's what auto insurance is for.
Does homeowners insurance cover sprinkler system?
Your homeowners insurance should cover damage to your sprinkler system if the cause of the damage is covered by your homeowners insurance policy such as fire, lightning, freezing of pipes, etc. Homeowners insurance is not a maintenance policy and will not cover mechanical failure of your system.
Does homeowners insurance cover hospital from a car accident?
No, Homeowners insurance is for the house. it does not cover cars or car accident claims.
Does homeowners' liability insurance cover personal injury on another property?
No, your Homeowners Insurance will not. Your Medical Insurance Will.
