Utilize the Mortgage Insurance to Realize The Dream Of Own Home
Utilize the Mortgage Insurance to Realize The Dream Of Own Home What Is Mortgage Protection Insurance? Mortgage Protection Insurance is a contract between policyholder and insurance provider which helps the insured to realize their dream of buying a home with least down payment. Under this plan, you need to pay a fixed monthly premium and they will take care of mortgage payments if you go off work before paying the whole mortgage. Why Should You have a Mortgage Insurance Plan? By having a mortgage insurance plan, you can get Help When You Need: They pay your mortgage premiums when you stop working due to illness, an accident or just losing a job. Death Benefits: In the event of death, your loved ones will receive an accumulated amount death benefits to take care of their pending debts and other essential expenses. Security of Home for Loved Ones: In case you die within 30-years’ period, the outstanding loan will be paid off by the insurance provider and your loved ones can live in the house peacefully. Types of Mortgage Protection Insurance Mortgage Insurance offers a range of policies including: • Borrower-paid (BPMI) • Lender-paid (LPMI) • Single premium • Split premium Borrower-paid (BPMI) This is the most common type of mortgage life insurance, where the borrower i.e. you have to pay a fixed premium every month and the insurance provider will come to rescue when you go off work. Lender-paid (LPMI) Under these plans, instead of you, the lender will pay the insurance premiums and insurance provider pays back when stop working due to illness, an accident or just losing a job. However, these plans come with a higher rate of interest than the borrower paid PMI plans. Single Premium These plans are made for those who believe in saving from whatever they earn. Under these plans, you can pay an accumulated amount as the single premium for mortgage and don’t need to worry about any other payments in future. Split premium These are the plans that come with lots of flexibilities allowing you to pay the mortgage premium in the most comfortable way. Here, you can split the mortgage amount to be paid in a desired number of premiums and can pay the same as per your comfort. These plans are a good option for people living on a paycheck basis. PMI Cancellation You can choose to cancel your PMI whenever you feel the need to and this can lower your insurance premiums as well. You can simply write an application to the insurance provider or apply their website and your application will be processed. However, you need to you have at least 20% home equity for the same. Automatic Termination As per the Homeowners Protection Acts, all lenders are instructed to automatically cancel the PMI once the borrower has paid at least 78 percent of the mortgage. If you are currently on your mortgage payments and the threshold is met, then also, the lender is supposed to cancel the PMI. Understanding PMI and MIP Private Mortgage Insurance or PMI plans the conventional loans provided to the borrower through an insurance provider where the insurance provider promises to make the mortgage payments if the borrower misses due to illness, accident or unemployment. Mortgage Insurance Premium or MIP plans are the loans approved by Federal Housing Administration or FHA where a borrower can get house loan on a down payment much lesser than the conventional loans. Calculating Home’s Original Value Calculating the real value of a property you are going to buy can protecting from paying an amount for the same and can save big on your investment. Generally, the original value of a house is either the appraised value at closing or the price you paid, whichever is less. Policy Claim Procedure Insured or their beneficiary can make a claim in the following three ways: Inform the Provider: You are supposed to let your insurance provider know as soon as your fall ill, meet an accident or lose your employment. Submit Proof of Relation: You might need to submit a proof of tragedy that took place with you to the insurance provider. Prove Your Relation: the beneficiary will need to provide a proof of relationship with the policyholder in the event of death. Inform the Provider You are supposed to inform your insurance provider in advance that you will not be able to make the next mortgage premium so that they will be prepared pay on behalf of you. Also, you will need to provide a valid reason why you can’t pay your next mortgage premium. Submit Proof of Relation This is much likely that you would be asked the proof if you have met an accident, fallen ill or have just lost your employment. You are supposed to submit the required proofs before the deadline given by your insurance provider. Prove Your Relation If the policyholder has passed away within the 30-year period, the beneficiary is supposed to inform the insurance provider so that they can initiate the process of paying off the outstanding debt. During this, the beneficiary also might be asked to prove their relationship with the deceased, through a valid identity proof. Exclusions in Mortgage Insurance You may not receive the protection when you need the most, is you are found involved in • Not informing the providers about a mishappenings • Deliberately delaying the premiums • Presenting misleading information or documents • Consuming drug or restricted medicines • Injuries due to racing vehicles Get Insurance at Best prices! Optinsure has been providing top mortgage protection insurance quotes from multiple insurers and helping customers to compare them for their benefits. Contact us to avail best insurance quotes easily and choose a cheap mortgage insurance plan as per your requirements. Website: http://www.optinsure.com Tel: 1 (908) 232-9968 Email: quote@optinsure.com
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