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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.
On a foreclosure who pays the difference in principle?
There are several possibilities. 1) The lender may continue to pursue the borrower for the money after foreclosure. 2) The lender may just write off the loss. 3) depending on the mortgage insurance situation, the insurance company may contribute.
What does it mean when they ask you if you want to hold your escrow or roll it over?
This may apply to escrow accounts for taxes. When a new home owner initially purchases a house the lender may require that an escrow or impound account be set up for taxes and insurance. The borrower pays monthly into the account. When the loan is refinanced, the home owner may have the option of rolling the existing escrow balance over into a new escrow account held by the new lender, or managing the money directly. If there is an escrow account then the monthly amount is included as part of the total monthly mortgage payment, and the lender pays property taxes and hazard insurance out of the account. If the borrower chooses not to have an escrow account, then the borrower is responsible for paying property taxes and insurance.
Which of these provides the funds needed for expenses such as property taxes homeowners insurance mortgage insurance etc.?
The escrow account that is established by the mortgage holder pays most of these expenses. From each mortgage payment made by the borrower, a certain portion goes into the escrow account. Then, when these expenses become due, the lender pays them from the escrow account. If there is an insufficient amount in the excrow account, the borrower is required to pay the balance. The main exception to this is homeowners insurance, which the borrower may get him/herself. The lender will require that it be named as an "additional insured" on the policy. This serves to secure the lender's financial interest in the property to the extent of the amount still owing. That is, the insurer will name the lender on the settlement check along with the insured's name. In that way, the lender can ensure that repairs are made and the value of the property is preserved. If the borrower does not get homeowners insurance, the lender can get it to secure its financial interest alone. This is often referred to as a "single interest" policy.
Which of these provides the funds needed for expenses such as property taxes homeowners insurance mortgage insurance etc?
The escrow account that is established by the mortgage holder pays most of these expenses. From each mortgage payment made by the borrower, a certain portion goes into the escrow account. Then, when these expenses become due, the lender pays them from the escrow account. If there is an insufficient amount in the excrow account, the borrower is required to pay the balance. The main exception to this is homeowners insurance, which the borrower may get him/herself. The lender will require that it be named as an "additional insured" on the policy. This serves to secure the lender's financial interest in the property to the extent of the amount still owing. That is, the insurer will name the lender on the settlement check along with the insured's name. In that way, the lender can ensure that repairs are made and the value of the property is preserved. If the borrower does not get homeowners insurance, the lender can get it to secure its financial interest alone. This is often referred to as a "single interest" policy.
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.
Who pays for a lender ordered appraisal?
Most lenders require the borrower to pay for it as one of the closing costs.
On a foreclosure who pays the difference in principle?
There are several possibilities. 1) The lender may continue to pursue the borrower for the money after foreclosure. 2) The lender may just write off the loss. 3) depending on the mortgage insurance situation, the insurance company may contribute.
What does it mean when they ask you if you want to hold your escrow or roll it over?
This may apply to escrow accounts for taxes. When a new home owner initially purchases a house the lender may require that an escrow or impound account be set up for taxes and insurance. The borrower pays monthly into the account. When the loan is refinanced, the home owner may have the option of rolling the existing escrow balance over into a new escrow account held by the new lender, or managing the money directly. If there is an escrow account then the monthly amount is included as part of the total monthly mortgage payment, and the lender pays property taxes and hazard insurance out of the account. If the borrower chooses not to have an escrow account, then the borrower is responsible for paying property taxes and insurance.
Which of these provides the funds needed for expenses such as property taxes homeowners insurance mortgage insurance etc.?
The escrow account that is established by the mortgage holder pays most of these expenses. From each mortgage payment made by the borrower, a certain portion goes into the escrow account. Then, when these expenses become due, the lender pays them from the escrow account. If there is an insufficient amount in the excrow account, the borrower is required to pay the balance. The main exception to this is homeowners insurance, which the borrower may get him/herself. The lender will require that it be named as an "additional insured" on the policy. This serves to secure the lender's financial interest in the property to the extent of the amount still owing. That is, the insurer will name the lender on the settlement check along with the insured's name. In that way, the lender can ensure that repairs are made and the value of the property is preserved. If the borrower does not get homeowners insurance, the lender can get it to secure its financial interest alone. This is often referred to as a "single interest" policy.
Which of these provides the funds needed for expenses such as property taxes homeowners insurance mortgage insurance etc?
The escrow account that is established by the mortgage holder pays most of these expenses. From each mortgage payment made by the borrower, a certain portion goes into the escrow account. Then, when these expenses become due, the lender pays them from the escrow account. If there is an insufficient amount in the excrow account, the borrower is required to pay the balance. The main exception to this is homeowners insurance, which the borrower may get him/herself. The lender will require that it be named as an "additional insured" on the policy. This serves to secure the lender's financial interest in the property to the extent of the amount still owing. That is, the insurer will name the lender on the settlement check along with the insured's name. In that way, the lender can ensure that repairs are made and the value of the property is preserved. If the borrower does not get homeowners insurance, the lender can get it to secure its financial interest alone. This is often referred to as a "single interest" policy.
What happens when a borrower pays of a pawnshop loan?
A personal item is returned to the borrower
What does it mean to hold paper on a house?
To "hold paper" on a house means to hold a mortgage or loan on the property. Essentially, it refers to the legal ownership of the property by the lender until the borrower pays off the loan.
How does no cost mortgage refinance work?
No-cost mortgage refinance refers to a situation where a borrower pays no closing costs on a mortgage that is refinanced. Typically, this is done because the new lender will pay the original lender the closing costs, and will still make a profit at the lower mortgage rate.
Who pays remaining principal on foreclosure?
Remaining principal (and interest on remaining principal unpaid) is the responsibility of the borrower, of course. The lender whose foreclosure sale did not net the full outstanding amount can place a lien on any other property of the borrower and sue to liquidate those possessions or receivables to satisfy the debt.
What is the meaning of property loan?
A property loan in which property is used as security purpose, Where the borrowers enters into an contract with the loan company where in borrower receives cash upfront of then makes payment in a time period until he pays back the lender in full
Can a cosigner repossess the car if other party is unable to pay?
Co signer does not have the right of subrogation. ( the power to recoup the losses). His agreement is only with the lender who will demand payment in case the principal borrower fails to pay. He has to honour the agreement. If he pays to the lender, he can have a legal remedy through court and can repossess the vehicle only if the court orders so. ( This is on an assumption that there is no agreement entered into between the principal borrower and the cosigner. Even if there is an agreement it can be enforced through a court only.)
