The amount you pay (generally monthly in your house payment) for the morgage insurance policy. Most lenders require you to carry mortgage ins or PMI if you finance more than 80% of the value of the home, or for other credit risk reasons. As a side note I have successfully had the mortgage ins dropped after my principle was lower than the 80% on two different mortgages.
Some Canadian mortgages do charge a premium for mortgage default insurance. If a mortgage company includes this type of premium in the mortgage, they are obligated by law to disclose the amount to the borrower.
There are many things that would make a mortgage insurance premium increase. Mortgage insurance is used when someone dies and pays money so that the mortgage will be paid. Smoking or participating in dangerous activities will increase the premiums.
1. alculate the Loan to Value ratio (LTV). LTV = loan amount /total mortgage value, where loan amount = total value of mortgage --down payment on the property.If the mortgage value is $100,000 and the client makes a 10-percent down payment ($10,000), the loan value is $90,000. LTV ratio is equal to 90000/100000 or 0.9 or 90 percent.2. Determine the mortgage insurance rate. Rates are different for private mortgage insurance (PMI) and an FHA loan. In order to determine the correct insurance rate, contact the insurance provider. Generally, PMI insurance rates fall within the range of 0.5 to 1 percent. FHA loans require a premium of 1.5 percent of the loan value at closing; monthly premiums fall in the range of 0.5 percent of the loan amount. Contact the insurance provider to determine the correct insurance rate.3. Calculate the premium with the following formula: Mortgage insurance premium (annual) = LTV amount x mortgage insurance rate. Mortgage Insurance premium (monthly) = mortgage insurance annual premium / 12. For example, if the LTV is $90,000 and the mortgage rate is 1 percent, the annual mortgage insurance premium = $90000 x 0.01 = $900, and the monthly mortgage insurance premium = $900 / 12 = $754. Research the benefits, liabilities and costs of owning mortgage insurance. Mortgage insurance may be tax deductible. However, the cost of the insurance can be substantial on large loans. Generally, the insurance can be canceled when 20 percent of the loan has been repaid, but the terms vary according to the provider.
You have the option to get a mortgage insurance for the length of your mortgage contract, or you can choose 10 years, 15 years, 20 years, 40 years, etc.
This depends on what you mean by mortgage insurance. If you are talking about products like PMI (Premium Mortgage Insurance) look on your escrow billing and it will be listed. If you are talking about a life insurance policy that would be either through credit life with your mortgage company or separately through an insurance company.
Could be paid for full term of your entire mortgage or paid off in full.
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.
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.
No, unless it specifically states in the mortgage contract the last insurance premium is to be paid with the loan payoff. If you don't pay it all they can do is cancel your insurance which you don't want anymore.
Look at the HUD-1 executed when you bought the house and look at your annual 1098 that the mortgage company gives you. One or the other will show the insurance premium. If there is no premium, your wife had no credit life insurance.
i have mortgage and homeowner insurance and fidc risk insurance
MIP (mortgage insurance premium) is required on all 30yr fixed FHA loans. 1.5% MIP funding fee, and the monthly 0.5% MIP payment