Comments on: Do you have to get mortgage insurance when buying a house. not house insurance, mortgage insurance?

By: murrayc

murrayc — Thu, 27 Nov 2008 00:24:04 +0000

Sometimes you are required to take out mort ins if your ratios are not good (loan to value, income or very large jumbo mortgages).

By: stephanierudder

stephanierudder — Wed, 26 Nov 2008 17:57:55 +0000

No, you are actually thinking about “title insurance”. Title insurance insures the buyer of the home that the land and home have good marketable title. Title problems can arise in real estate and cause a new home owner/buyer hundreds or thousands of dollars in court costs. There are two kinds of policys. Mortgagees policys for the lender/bank. And owners policy for the new owner. These policys will cover you if anyone ever comes out of the woodwork (examples: previous lenders, previous owners, heirs of previous owners, errors in previous deeds, unknown easements, etc.) and claims an interest in the land upon which your home sets. This use to be refered to as abstracting. Its now Title Insurance. It has nothing to do with home insurance. If Title problems arising after the buy your home then the underwriter who issued your title insurance policy will have to cover all court costs for you. They will have to provide you with information on easements, set-back lines, property restrictions, etc. A good website to go to is Southern Title Insurance.com. Hope this helps. If you have any more questions then please e-mail me at. I am an agent.

By: DEB

DEB — Tue, 25 Nov 2008 19:11:05 +0000

Mortgage insurance is rerquired fo first time buyers and or FHA approved buyers. It protects lender from default. Once your credit history is established with prompt, not late mortgage payments for a period of 1 to 2 years, you may discontinue it with lender approval. Lender will not tell you this as they receive a percentage of payment. Check it out at your bank or Federal Housing Authority. Much Luck!

In addition, you must have home owners insurance for house damage protection

By: edward I

edward I — Mon, 24 Nov 2008 13:52:48 +0000

Not mandatory. Life insurance will suffice if one wants it to be used for that purpose.
In most cases mortgage ins. is more costly than
Term Life, although they pitch payment coverage in case of illness.
Same with credit cards.
High profit.

By: intrepid6121224

intrepid6121224 — Sat, 22 Nov 2008 19:38:10 +0000

you dont have to get mortgage insurance but it is a good saftey precaution, i have and my other family members have it too. when my father passed away suddenly a few years ago, that insurance paid off the mortgage and saved my mother a heartache of having a healthy mortgage to deal with, trust me, its a very worthwhile minimal expense added to your mortgage payment

By: EPnTX

EPnTX — Sat, 22 Nov 2008 10:07:26 +0000

You do not have to get it, but it is a good idea.

By: tonalc1

tonalc1 — Sat, 22 Nov 2008 07:56:38 +0000

You have to have PMI; it’s to protect the lender, not you.

Most, but not all, lenders will remove their PMI requirements if:

1. The loan to value ratio on your loan is 80% or less. (Some require 75% or another LTV).
2. You have made your payments on time for two years.