One of the benefits of LMI is that persons who are believed to fall under risk classifications, such as the elderly or people with lower sums of money saved for a home deposit, have a better chance of securing a mortgage. The downside of this is that it can mean higher insurance premiums for this category of homebuyers.
In Australia, two associations dominate a duopoly of lenders mortgage insurance – Genworth and PMI. While LMI is not asked by law, it is usually demanded by your lender when the amount you have saved for a deposit is less than 20% of the total value of the property. The excellent method to prevent the added expense of LMI is to save at least 20% for the deposit if this is attainable.
How do you know whether you should worry about lenders mortgage insurance (LMI)? In general, if your home loan sum is greater than 80% of the value of the property, you will need LMI. This means your lender is covered if you happen to miss a repayment. To insure yourself during any period you miss payment because of injury, illness or unemployment, you would necessitate mortgage protection insurance.
Usually, the sum you pay will differ depending on the size of your loan and amount of money of deposit you have given. When you take out a home loan, you pay mortgage insurance to your lender in one lump sum, either in advance or by adding the charge onto your total loan amount. If you switch lenders, Generally your insurance is not movable, but depending on your mortgage insurer, you can be entitled to a partial repayment of up to 40% in some cases. Repayments ought to be applied for directly through the mortgage insurer rather than through your lender.
Asking how much LMI is supposed to cost you? It all depends on the amount of money of genuine resources you have. LMI works on a sliding scale refering to our approximated risk level according to your credit history, so in essence the less deposit you have saved, the more costly your insurance will be. And as well, if you have a larger sum of money of savings, your insurance value will be reduced.
Do you need help getting the best home loan deal possible? Visit our site today.
Author: Evelyn Miller
Monday, January 12, 2009
The Benefits of Using a Mortgage Broker
Buying a house can be complicated enough, but trying to sort out which mortgage is best, what the different rates are, etc, can be like trying to pick your way through a minefield. That’s why using a mortgage broker is such a good idea, and one that more and more home buyers are starting to do.
Whereas previous generations of home buyers were content to simply arrange the mortgage through their banks, today’s buyers are different. With the Internet offering new ways for people to look for deals on everything from home insurance to car loans, mortgage lenders are no longer the ones in control. However, using a mortgage broker is still more advisable than looking for offers by yourself.
Why a Mortgage Broker?
A mortgage broker is a certified professional and someone who has spent years training to become an expert in mortgages. Regulated by the Financial Services Authority (FSA), they have a strict set of guidelines that they must adhere to. This includes the information they give you, and the ethical decisions they make regarding any financial advice they provide to you.
Because of this, they are usually independent, which offers the potential home buyer the benefit of unbiased advice. Even if a mortgage broker belongs to a company, you should still be offered a greater choice when it comes to the type of mortgage you take out, as well as whom you take it out with. Compare this to banks and building societies, which usually try and arrange your mortgage solely with them, and the extra cost in using a broker are more than worth it.
What does a Mortgage Broker do?
Because they are such experts in their field, a mortgage broker can offer a host of services that you may not have received otherwise. As well as their advice, you can also expect a broker to:
* Find the mortgage that’s right for you
* Access to thousands of different lenders nationwide
* Provide a “mortgage calculator” that will help you decide how much you can borrow
* Explaining the different mortgages – fixed rate or variable, self-certification or ad credit mortgage, etc
These are just some of the basic services that a broker can offer you. They can also help you arrange the best survey companies to use, close your paperwork, arrange legal fees and advice – pretty much anything connected with a mortgage, a broker can help you with. Additionally, a mortgage broker can also advise you on what additional costs you should include – for example, mortgage protection insurance and why you need it.
One of the biggest reasons many home buyers are put off using a mortgage broker is because of the extra cost involved – after all, they’re already spending thousands on the property itself. However, the extra cost can often be included within the mortgage itself, and even if it’s not, the few hundred pounds you spend on a mortgage broker’s expertise could save you thousands in the long run.
If you’re looking to buy a house soon, or even re-mortgage an existing property, speaking to a mortgage broker could save you more than you think, and is well worth the time and cost involved.
Visit you source of UK Mortgages to find an independent Mortgage Broker near you
Author: michael sterios
Whereas previous generations of home buyers were content to simply arrange the mortgage through their banks, today’s buyers are different. With the Internet offering new ways for people to look for deals on everything from home insurance to car loans, mortgage lenders are no longer the ones in control. However, using a mortgage broker is still more advisable than looking for offers by yourself.
Why a Mortgage Broker?
A mortgage broker is a certified professional and someone who has spent years training to become an expert in mortgages. Regulated by the Financial Services Authority (FSA), they have a strict set of guidelines that they must adhere to. This includes the information they give you, and the ethical decisions they make regarding any financial advice they provide to you.
Because of this, they are usually independent, which offers the potential home buyer the benefit of unbiased advice. Even if a mortgage broker belongs to a company, you should still be offered a greater choice when it comes to the type of mortgage you take out, as well as whom you take it out with. Compare this to banks and building societies, which usually try and arrange your mortgage solely with them, and the extra cost in using a broker are more than worth it.
What does a Mortgage Broker do?
Because they are such experts in their field, a mortgage broker can offer a host of services that you may not have received otherwise. As well as their advice, you can also expect a broker to:
* Find the mortgage that’s right for you
* Access to thousands of different lenders nationwide
* Provide a “mortgage calculator” that will help you decide how much you can borrow
* Explaining the different mortgages – fixed rate or variable, self-certification or ad credit mortgage, etc
These are just some of the basic services that a broker can offer you. They can also help you arrange the best survey companies to use, close your paperwork, arrange legal fees and advice – pretty much anything connected with a mortgage, a broker can help you with. Additionally, a mortgage broker can also advise you on what additional costs you should include – for example, mortgage protection insurance and why you need it.
One of the biggest reasons many home buyers are put off using a mortgage broker is because of the extra cost involved – after all, they’re already spending thousands on the property itself. However, the extra cost can often be included within the mortgage itself, and even if it’s not, the few hundred pounds you spend on a mortgage broker’s expertise could save you thousands in the long run.
If you’re looking to buy a house soon, or even re-mortgage an existing property, speaking to a mortgage broker could save you more than you think, and is well worth the time and cost involved.
Visit you source of UK Mortgages to find an independent Mortgage Broker near you
Author: michael sterios
How to Boost Your Income with Mortgage Protection Insurance
Mortgage protection insurance is quickly becoming a great way to boost your real estate investment income. Could you use an extra $500-$1,000 a week part-time? It’s easy, cost effective and it allows you to help families even more while putting money in your pocket.
The investor who deals with “land contracts “and” lease to own deals could use the mortgage protection insurance as an extra tool in their real estate arsenal. By adding mortgage protection insurance to your services you are not only helping a family get into home ownership, but now they can stay there even if the main bread winner dies or becomes disabled.
You are protecting the entire family and the best part is, you’re getting paid for it.
Mortgage protection insurance should not be confused with PMI (Principal Mortgage Insurance). PMI is a certain type of insurance policy from a bank or mortgage company in which you pay a fixed premium for a certain number of years to cover the risk of foreclosure. Should something happen to you while the policy is in effect; the insurance pays the remaining mortgage. The loan typically lasts for the life of the mortgage. As you pay off the mortgage, the end benefits goes down, too. At the end of the policy, the benefit is zero.
The mortgage protection insurance I’m writing about offers a different option. Essentially you pay the premiums, and your family gets the money and the right to decide what to do with it. Also, this life insurance
is portable. This means if you move in a few years, you won't have to replace your insurance. This can save you a great deal of money since insurance rates usually increase, as you get older. The best part of all is that if you don’t die or use any of the benefits, you get all your money back tax-free.
When I started investing in real estate, selling life insurance was the last thing on my mind, but that all changed. A representative of the National Agents Alliance introduced me to mortgage protection insurance last year and now the insurance side of my business is rivaling some of my real estate investments. It is possible to make five-to-seven thousand dollars a month in positive cash flow just with the insurance. No prospecting, no rehabbing and best of all no tenants.
The process is very simple and it won’t cost you thousands to begin. The most important thing required is your life insurance license. Don’t worry about passing the test, it’s easier than the realtor test and lots of the prep can be done online. There are differing laws in different states so you need to find out the precise requirements for your home state. You can get most of that information from your state’s department of insurance page.
To find out more about mortgage protection insurance and how you can earn extra money helping others check out www.BeltranGroup.com
Author: Robb Beltran
The investor who deals with “land contracts “and” lease to own deals could use the mortgage protection insurance as an extra tool in their real estate arsenal. By adding mortgage protection insurance to your services you are not only helping a family get into home ownership, but now they can stay there even if the main bread winner dies or becomes disabled.
You are protecting the entire family and the best part is, you’re getting paid for it.
Mortgage protection insurance should not be confused with PMI (Principal Mortgage Insurance). PMI is a certain type of insurance policy from a bank or mortgage company in which you pay a fixed premium for a certain number of years to cover the risk of foreclosure. Should something happen to you while the policy is in effect; the insurance pays the remaining mortgage. The loan typically lasts for the life of the mortgage. As you pay off the mortgage, the end benefits goes down, too. At the end of the policy, the benefit is zero.
The mortgage protection insurance I’m writing about offers a different option. Essentially you pay the premiums, and your family gets the money and the right to decide what to do with it. Also, this life insurance
is portable. This means if you move in a few years, you won't have to replace your insurance. This can save you a great deal of money since insurance rates usually increase, as you get older. The best part of all is that if you don’t die or use any of the benefits, you get all your money back tax-free.
When I started investing in real estate, selling life insurance was the last thing on my mind, but that all changed. A representative of the National Agents Alliance introduced me to mortgage protection insurance last year and now the insurance side of my business is rivaling some of my real estate investments. It is possible to make five-to-seven thousand dollars a month in positive cash flow just with the insurance. No prospecting, no rehabbing and best of all no tenants.
The process is very simple and it won’t cost you thousands to begin. The most important thing required is your life insurance license. Don’t worry about passing the test, it’s easier than the realtor test and lots of the prep can be done online. There are differing laws in different states so you need to find out the precise requirements for your home state. You can get most of that information from your state’s department of insurance page.
To find out more about mortgage protection insurance and how you can earn extra money helping others check out www.BeltranGroup.com
Author: Robb Beltran
The Home Owners and Buyers Guide to Organising Mortgage Insurance
Be careful with this type of insurance. Mortgage protection is designed to help protect you, while Lender's mortgage insurance will work to protect your financial institution holding your mortgage. When you take out a lender's mortgage insurance policy, you are not protecting yourself. This type of insurance protects the financial institution if you default on your mortgage. It applies when you default on your mortgage and the money that is raised from the sale of the home and other assets you lose does not provide enough money to the lender to cover the debt of the home. This type of mortgage insurance is likely a must for those who are getting into their first home loan and have no to a small down payment for the purchase of the home.
Mortgage protection insurance provides you with protection should you become unable to meet your mortgage obligations. This type of policy will cover repayments to help you stay in your home should you be unable to make payment.
Coverage Under Lender's Mortgage Insurance and Mortgage Protection Insurance
It is important to consider what type of mortgage insurance you are getting and consider the requirements of each.
The amount of lender's mortgage insurance you will need to have will be closely related to the amount of your deposit. In most situations, about 20 per cent down payment or less will require the use of lender's mortgage insurance. This type of insurance is usually considered compulsory every time there is a high level of risk to the lender. Generally, you have little choice in which company is used and the amount that you must pay based on what your mortgage lender requires. This should be a decision made between you and your lender.
With mortgage protection insurance on the other hand, you do have options. This type of insurance is offered with various differences from one insurer to the next. Policies will be very different, but generally will provide a set amount of payment if you are unable to work due to an approved condition, such as an injury or illness, or in some situation accidents. There are other policies available that are more far reaching. For example, (depending on the policy) sometimes the comprehensive version of mortgage protection insurance will provide you with a financial payout if you become involuntarily unemployed for a number of reasons.
With mortgage protection insurance, be sure to get a policy that will provide you with the costs of covering the mortgage entirely if you should die or become permanently disabled.
Questions for Your Provider
When you apply for a loan, ask your mortgage lender if they require lender's mortgage insurance. If they do, you will need to find out if they provide a specific company to work with or if you are able to get your own insurer. The lender's mortgage insurance company will apply premium payments to your repayment at the time that the loan is put into place, giving you little to no control over it. Remember, though, once you reach the 20 per cent level to stop the insurance payments as they will no longer be needed.
With mortgage protection insurance, there are several questions to ask.
What types of illnesses, injuries and accidents will qualify? What will not qualify? Are there any maximum payout time periods? Is there any waiting periods before payments will be made? Does your policy provide for the payment of your entire mortgage all at once if you die (by your family) or become disabled for the long term?
Be sure to understand all of the policy details and agree to the amount of premiums and payouts.
Ways to Save on Lender's Mortgage Insurance and Mortgage Protection Insurance
You will not have much opportunity to cut costs with lender's mortgage insurance. With mortgage protection insurance, the best way to save money is to know what options you have by comparing several companies. Some plans offer discounts for long time use. The amount of payout and the types of qualifying payouts will determine the overall cost of the policy.
Beware Before Signing
With all insurance policies, know what the policy covers and what it does not. With lenders mortgage insurance, you will sign for the insurance at the time of making your mortgage application and contract. Fully understand what is being covered as well as when you can cancel your insurance payments.
With mortgage protection insurance, take the time to fully understand your options and the costs, including the any clauses that may cause the policy to be void (such as not full disclosure of illnesses.)
Additional Coverage to Consider
Mortgage insurance in general does not provide you with enough coverage for your home. You will need home insurance. In addition, with mortgage protection insurance, you should not consider this type of insurance to replace life insurance plans. Both plans often provide enough protection for you.
Author: JoThomas
Mortgage protection insurance provides you with protection should you become unable to meet your mortgage obligations. This type of policy will cover repayments to help you stay in your home should you be unable to make payment.
Coverage Under Lender's Mortgage Insurance and Mortgage Protection Insurance
It is important to consider what type of mortgage insurance you are getting and consider the requirements of each.
The amount of lender's mortgage insurance you will need to have will be closely related to the amount of your deposit. In most situations, about 20 per cent down payment or less will require the use of lender's mortgage insurance. This type of insurance is usually considered compulsory every time there is a high level of risk to the lender. Generally, you have little choice in which company is used and the amount that you must pay based on what your mortgage lender requires. This should be a decision made between you and your lender.
With mortgage protection insurance on the other hand, you do have options. This type of insurance is offered with various differences from one insurer to the next. Policies will be very different, but generally will provide a set amount of payment if you are unable to work due to an approved condition, such as an injury or illness, or in some situation accidents. There are other policies available that are more far reaching. For example, (depending on the policy) sometimes the comprehensive version of mortgage protection insurance will provide you with a financial payout if you become involuntarily unemployed for a number of reasons.
With mortgage protection insurance, be sure to get a policy that will provide you with the costs of covering the mortgage entirely if you should die or become permanently disabled.
Questions for Your Provider
When you apply for a loan, ask your mortgage lender if they require lender's mortgage insurance. If they do, you will need to find out if they provide a specific company to work with or if you are able to get your own insurer. The lender's mortgage insurance company will apply premium payments to your repayment at the time that the loan is put into place, giving you little to no control over it. Remember, though, once you reach the 20 per cent level to stop the insurance payments as they will no longer be needed.
With mortgage protection insurance, there are several questions to ask.
What types of illnesses, injuries and accidents will qualify? What will not qualify? Are there any maximum payout time periods? Is there any waiting periods before payments will be made? Does your policy provide for the payment of your entire mortgage all at once if you die (by your family) or become disabled for the long term?
Be sure to understand all of the policy details and agree to the amount of premiums and payouts.
Ways to Save on Lender's Mortgage Insurance and Mortgage Protection Insurance
You will not have much opportunity to cut costs with lender's mortgage insurance. With mortgage protection insurance, the best way to save money is to know what options you have by comparing several companies. Some plans offer discounts for long time use. The amount of payout and the types of qualifying payouts will determine the overall cost of the policy.
Beware Before Signing
With all insurance policies, know what the policy covers and what it does not. With lenders mortgage insurance, you will sign for the insurance at the time of making your mortgage application and contract. Fully understand what is being covered as well as when you can cancel your insurance payments.
With mortgage protection insurance, take the time to fully understand your options and the costs, including the any clauses that may cause the policy to be void (such as not full disclosure of illnesses.)
Additional Coverage to Consider
Mortgage insurance in general does not provide you with enough coverage for your home. You will need home insurance. In addition, with mortgage protection insurance, you should not consider this type of insurance to replace life insurance plans. Both plans often provide enough protection for you.
Author: JoThomas
Subscribe to:
Posts (Atom)
