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Is there a requirement for the second mortgage to be included on the first mortgage insurance?
Wiki User
∙ 13y ago
There is a document called the loss payee clause. Each lender needs their own clause, they can't be combined as one document. So yes there is a requirement for the second mortgage to be listed as a loss payee. Before a loan can be funded, first or second mortgage, the prospective lender will ask you for your homeowners declaration page. They will than contact your second mortgage lender and make sure that they are listed as a lienholder.
Wiki User
∙ 13y ago
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What is the statute of limitations on second mortgage in CA?
A second mortgage is not included in a Statue of Limitation law. Explain more about your first mortgage, and I will be able to tell you what will happen to your second mortgage.
Do you have to seek approval from first mortgage for a second mortgage?
You should review your first mortgage document for any requirement that the lender must be notified before you execute a second mortgage. If there is no clause to that effect then the answer is no.
Why would a person need a second mortgage?
A person would need a second mortgage because it is a way to avoid mortgage insurance. They might also need a second mortgage if they need a lump sum of cash.
Your credit report show your second mortgage being included in your bankruptcy you never re-affirmed the second mortgage do you still have to pay it?
Never get a second mortgage --- only if you want to keep your house. 2nd mortgagees can foreclose on you
Does a second mortgage need to be insured?
If you are referring to "Homeowners" insurance, the second mortgagee should be listed on the policy.
What is simple mortgage?
A mortgage is simple if it lacks complexities such as adjustable rates, balloon payment at end, mortgage insurance, reverse mortgage, second mortgage, etc. Fixed payments over fixed time-frame.
The Value of Mortgage Insurance to All Consumers?
Many people do not realize the importance of purchasing a mortgage insurance policy. A mortgage insurance policy is even more important than the things that are in the home, considering if something happens to default the mortgage loan, the lender is protected. With mortgage insurance, the insurance company basically becomes the beneficiary in the case of any default against the borrower although the borrower purchases the insurance and pays the premiums. Also, many homeowners or buyers do not know that mortgage insurance is a necessity or requirement when it comes to getting any type of home loan to purchase a property. There are two main types of mortgage insurance, Private Mortgage Insurance and Mortgage Protection Insurance. With Private Mortgage Insurance or PMI, if a consumer doesn't hold at least twenty percent equity or cannot put a twenty percent down payment on the mortgage loan a PMI may become a requirement to get any mortgage loan. This is because the PMI is used to protect the lender against any loss in case of default. There is Borrower paid PMI which is where the consumer pays an insurance premium. There is also Lender paid PMI which means the lender pays for the PMI and the lender recovers any premium costs by adding it to the mortgage loan interest charges. The second type is Mortgage Protection Insurance. This type is available in the case that the consumer cannot make their monthly mortgage payments due to financial hardships, illnesses or injuries and other such issues. Within this category is Mortgage Life Insurance which covers the remaining amount of the mortgage loan in case of death. There is also Mortgage Disability Insurance that covers the consumer in the event that the person becomes physically disabled. This coverage usually only pays about fifty to seventy percent of the person's yearly salary towards mortgage payments. A consumer may also get a combination of Life and Disability Mortgage Protection, but it is wise to compare different policies and be knowledgeable of the policies before committing to them. In conclusion, Mortgage insurance policies are in place to protect the lenders but also have options such as the Life and Disability Protection policies to protect the consumer. In any case, every consumer should research the differences, ask questions about premium costs and coverage and not settle for merely one policy if the others may be available to them.
What is a good company in Washington to get mortgage life and disability insurance from?
Mortgage life and disability insurance is offered by such companies as State Farm, Total Mortgage Protection, and Family Insurance. Of these, State Farm is probably the best, receiving an average score of 80 out of 100 on the website Viewpoints, based on 775 reviews. It is the second-best-rated insurance company on the website, behind USAA.
Who receives the mortgage insurance payments?
The insurance company. Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home. Home acquisition debt are loans whose proceeds are used to buy, build, or substantially improve your residence. Thus mortgage insurance policies on cash-out refinances and home equity loans won't qualify for the deduction.
If you sold your home and did not sell for enough to pay the first and second mortgage what happens to the second mortgage lien?
Was the 2nd lien included in and discharged in your bankruptcy? If not, then that lien still encumbers the title to the property and is probably a debt you still owe.
Why might a homeowner take out a second mortgage?
A homeowner take out a second mortgage if they are struggling to pay off their first mortgage. You can read more at www.bostonapartments.com/mortgage/second-mortgage/second-mortgage.html -
How do you avoid mortgage insurance?
Avoiding mortgage insurance usually requires having sufficient equity so the lender doesn't require it. Mortgage insurance comes in two major forms. Private mortgage insurance, or PMI, is provided by private companies on conventional mortgage loans with balances over 80 percent of the home's value. Mortgage insurance premium, or MIP, is required on FHA loans. FHA requires both up-front MIP and monthly MIP. Mortgage insurance may be tax-deductible, just like mortgage interest is.Sponsored LinkAmerican ExpressGain Access to Exciting Events With American Express. Learn More!americanexpress.com1Provide a down payment of at least 20 percent or ensure you have 20 percent equity in the home if the loan is a refinance. This is the most common way to avoid mortgage insurance. Lenders know that if they have to foreclose, they risk losing money when the home is sold if the balance of the mortgage is more than 80 percent of the home's value. The PMI covers the losses incurred by the lender.2Obtain a second mortgage instead of having one mortgage if your down payment is less than 20 percent. Only first mortgage lenders can require PMI on the loan. If your first mortgage is at 80 percent and you have a 10 percent second, your loan will not require mortgage insurance, even though the two loans combined are over 80 percent of the value. The interest rate on the second mortgage may be higher than the first, but the total payment may be less than if you had a loan with PMI.3Find a loan program that does not require mortgage insurance. Just because the loan amount is over 80 percent of the home's value, that doesn't mean that mortgage insurance has to be provided. Some lenders have programs that allow higher loan amounts and do not require mortgage insurance coverage. Usually the interest rate is higher to account for the extra risk these loans have.4Ask the seller to pay for a single premium PMI for your loan at closing. Your loan will still have PMI, but if the seller pays for it, you do not have to. These policies require one payment up-front and no monthly payment. Many lenders allow the seller to pay part of the closing costs, and this can be included in your closing costs.
