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Is there an insurance you can purchase to protect your mortgage payment in case you lose your job?
Wiki User
∙ 14y ago
Yes, there is depending I believe that you lost your job and did not quit. Through your present mortgage lender.
Wiki User
∙ 14y ago
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What is hazard insurance for a mortgage?
Hazard insurance protects a homeowner against the costs of damage from fire, vandalism, smoke and other causes. When you take out a mortgage, the lender will require you to take out hazard insurance to protect their investment; many lenders will incorporate the insurance payment into your monthly mortgage payment.
How does mortgage insurance protect a homeowner?
Mortgage insurance protects a homeowner in one of two ways depending upon what type of insurance it is. Mortgage insurance is one of two types. Mortgage life insurance pays off the mortgage in the event of death. Payment protection covers job loss or disability of homeowner.
How can GMAC Mortgage co put ins on your mortgage account without your permission?
Your security deed or debt deed requires you have fire & hazard insurance. If you fail to show proof to your lender they can "Force" insurance on your property...and it is always MUCH higher than if you get it yourself. It is done to protect the lenders interest in the property in the event something like a fire destroys the home. If you are talking about mortgage insurance and not homeowners insurance then it is also required unless you make a 20% down payment on your purchase or have 20% equity on a refinance.
Why you need building insurance for mortgage?
The the person who owns the mortgage (mortgagee) wants to protect their investment.
What is the purpose of mortgage protection life insurance?
The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.
What is hazard insurance for a mortgage?
Hazard insurance protects a homeowner against the costs of damage from fire, vandalism, smoke and other causes. When you take out a mortgage, the lender will require you to take out hazard insurance to protect their investment; many lenders will incorporate the insurance payment into your monthly mortgage payment.
How does mortgage insurance protect a homeowner?
Mortgage insurance protects a homeowner in one of two ways depending upon what type of insurance it is. Mortgage insurance is one of two types. Mortgage life insurance pays off the mortgage in the event of death. Payment protection covers job loss or disability of homeowner.
How reliable is PMI mortgage insurance?
"Most people do not understand the purpose of PMI insurance. I know it is to protect the mortgage company from risk, but it almost seems like it's just another fee to add to the payment."
How can GMAC Mortgage co put ins on your mortgage account without your permission?
Your security deed or debt deed requires you have fire & hazard insurance. If you fail to show proof to your lender they can "Force" insurance on your property...and it is always MUCH higher than if you get it yourself. It is done to protect the lenders interest in the property in the event something like a fire destroys the home. If you are talking about mortgage insurance and not homeowners insurance then it is also required unless you make a 20% down payment on your purchase or have 20% equity on a refinance.
Why you need building insurance for mortgage?
The the person who owns the mortgage (mortgagee) wants to protect their investment.
What is the purpose of mortgage protection life insurance?
The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.
Does private mortgage insurance protect you from being sued over foreclosure of your house?
No.No.No.No.
What does PMI stand for when referring to insurance?
With regards to insurance, the acronym PMI stands for Private Mortgage Insurance. This is an insurace where the borrower of a mortgage pays a premium, but if the borrower defaults, the lender gets the money. This helps protect the lender in cases of larger mortgage values.
How much should you save up to make a down payment on a house?
You would be smart to put down at least 20% of the home price. This will protect you from price fluctuations as well as qualifying you for lower mortgage rates.Another consideration is how much you can afford to pay monthly for your mortgage. A larger down payment (or cheaper house!) will allow you to fix a reasonable payment for the income you earn. In the past, it was recommended that you not get a mortgage for more than 2.5% of your income and that the total payments for insurance, taxes and mortgage be less than 1/3 of your net income.
What is mortgage life insurance?
Mortgage insurance is mortgage insurance, usually sold to the applicant at the closing of the purchase of a house. At the title company. It has nothing to do with life insurance, per se, because upon death of the insured, the LOAN is paid off. The survivor RECEIVED NO CHECK.Life insurance, on the other hand, has nothing to do with mortgage insurance. Upon death of the insured, the SURVIVOR, not the title company, receives a check for the amount of the death benefit. You cannot find the word mortgage on what is euphemistically called by the agent "MORTAGE LIFE INSURANCE".The same answer applies, in general, to the question what is term life insurance.Mortgage life insuranceMortgage life insurance is a form of decreasing term life insurance. It pays off your mortgage if you die. Mortgage life insurance is often confused with Private Mortgage Insurance (PMI). You buy mortgage life voluntarily to protect your survivors from having to make the monthly payments. But with Private Mortgage Insurance, lenders require you to buy a policy in order to protect them (the lenders) against the possibility that you will default on the debt.Mortgage life insurance is a life insurance policy that one would take out on themselves or another person involved in a mortgage take out on a home or business so that if they should die the mortgage can be paid off. As the amount of the mortgage is paid down the amount of life insurance received is lowered. This type of life insurance will never pay more than the amount of the remaining mortgage.Given the relatively low cost of term life insurance on a healthy person, one might consider buying a decreasing term life insurance policy at the inception of the mortgage, rather than as part of the real estate transaction. The trick is to correlate the period of the decreasing term with the amortization of the mortgage.
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.
How do you protect yourself from incurring inherited mortgage debt from your father?
Generally, if your father owns real property and grants a mortgage while he is living there is no way you can "protect yourself from the mortgage debt" if he should die and you are his beneficiary. You could ask your father to purchase private mortgage insurance that would pay off the mortgage in the case of his death. However, if he does not then you have to decide if you want the property or not in the case of his death. If you don't pay the mortgage the lender will take possession by foreclosure. If you want to keep the property you'll need to pay the mortgage.
