Posted on: 12-02-11 23:40:54
Do I need to take any insurance for my mortgage? how much would it cost me to get the insurance for, say, 350K mortgage amount ? and what all other things I should take care while buying this insurance (any particular terms I should check for?)?
- Also, if somebody can pls give me the info from where can I get the mortgage insurance?
As I understand, If I would be putting 10% down payment then I would have to pay the mortgage insurance premium to CHMC, which is to secure bank's money in case of personal bankruptcy.
Quote:
Originally posted by MeagainMe
Do I need to take any insurance for my mortgage? how much would it cost me to get the insurance for, say, 350K mortgage amount ? and what all other things I should take care while buying this insurance (any particular terms I should check for?)?
---> You are the one who has to make a decission to take or not to take up insurance, if you have this insurance and suppose you are out of work/or become invovled in an accident, the insurance will continue to make your mortgage payments, ofcourse you have to read the fine prints before you sign the insurance
for 350k it will be around/average an extra $200 per month on top of your mortgage
- Also, if somebody can pls give me the info from where can I get the mortgage insurance?
----> It is generally advised not to take up the insurance from the same mortgage provider. PM me if you want to purchase an insurance, I know an Insurance agent who can give you the best deal.
As I understand, If I would be putting 10% down payment then I would have to pay the mortgage insurance premium to CHMC, which is to secure bank's money in case of personal bankruptcy.
---> Correct
Go for Life Insurance rather than mortgage insurance.
Mortgage Insurance beneficiary is Bank who will providing mortgage to you.
Life Insurance beneficiary will be your beneficiary.
Tahnks,
mk11
There are 2 kinds of mortgage insurance..
1> CHMC mortgage insurance which is compulsory if u put less than 20%
This covers the bank in case u cant pay ur mortgage..
For bank to collect from CHMC bank has to fore close property.
Your credit will be pretty much screwed if ur bank ends collecting money from CHMC instead of u.
2> Mortgage life insurance sold by banks which acts as a life insurance plan and pays for the balance of the loan if u die.
From what i have heard it is cheaper and better to buy term life insurance than mortgage life insurance.
Quote:
Originally posted by ashedfc
In the banks life insurance, the chances of claim denial is higher as the underwriting is done at the time of claim (when the person is already dead & gone)..
Can you put it in simple English, so as to understand better?
Make sure you get a life insurance since your money insured will stay the same unlike mortgage insurance where the prinicpal will deline.
PM if you need further information.
Rona
