Several types of insurance can come into play if you own a home. One of them is mortgage protection insurance. What does this insurance cover? Should you buy it? Here’s what you need to know. Paying off the mortgage The purpose of mortgage protection insurance (MPI) is to pay off the homeowner’s mortgage should he… Read more »
Each month you send off a hefty chunk of money to your mortgage company. If you’re like most people, it represents 25 percent to 30 percent of your income. That payment is split into as many as five parts. Take a look. The payment against the principal amount of the loan. Say you took out… Read more »
Buyers who put less than 20 percent down on a home might find themselves with a higher-than-expected monthly payment. The extra money, which often takes first-time homebuyers by surprise, is for private mortgage insurance. What is PMI and why does the lender require it? Lender’s risk. When a borrower puts down less than 20 percent… Read more »
Homebuyers must make two large payments when purchasing a house. One is the earnest money paid upon execution of the sales contract. The second is the down payment to the lender at closing. What are the differences between the two? It’s all about commitment. In both cases, these payments represent a commitment to the purchase…. Read more »
