The pros of making your inurance payment separately in my case is that it allows me to pay the entire year at once. I can then take the difference from what my monthly mortgage payment would have been and invest it until my next premium is due. I keep the gains, withdrawl the amount for the premium and repeat this prcedure year after year. The con would naturally be coming up with the initial full year premium. As far as just making the monthly premium payment, I can't think of any advantages to paying the insurance company separately, other than if your premiums go down (yah right) you would realize the savings right away, instead of waiting for an escrow refund.
principle, interest, insurance and taxes
In some mortgages insurance is included in the payment, but in others it isn't. If you don't know what you have you need to check.
One way is to check with the lender. Most lenders have affiliations with mortgage life insurance companies to provide this service and in most cases the insurance premium is included in the mortgage payment.
the house payment
Yes and no, mortgage protection insurance is necessary to have. According to the Private Mortgage Insurance Law lenders who put less than a 20 percent down payment on there loans are required to pay private mortgage insurance or mortgage protection insurance.
Interest and a portion of the principal balance. Often banks will escrow your insurance and tax payments as well.
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.
Principal, interest, tax, and insurance
More mortgage insurance is important because it pays lenders and investors in the event that a borrower defaults on a loan. When a loan goes bad, the mortgage insurance covers the lender for all their losses. Mortgage insurance helps to compensate borrowers for their lack of equity in the property, especially when their down payment is below average, percentage wise. The process of securing mortgage insurance usually comes along with the finance process of a home. Premiums for mortgage insurance are included in the monthly payment made by borrower. Some borrowers can obtain private mortgage insurance through government agencies. Although mortgage insurance as to the cost of the loan, it helps more people secure mortgage financing, especially those who don't have a lot of money to pay up front.
PITI is often referred to when speaking of a mortgage payment it stands for: Principle Interest Taxes and Insurance all of the components of a mortgage payment if the bank is paying the property taxes and the homeowners Insurance.
decreasing term insurance...