Home Owners Insurance Vs Private Mortgage Insurance (PMI)

Home Owners Insurance Vs Private Mortgage Insurance (PMI)

Each mortgage payment includes 5 items. It’s called “Piti + PMI. “P” stands for the payment, that the principal (this is reduced loan balance) in the direction of your capital. “I” stands for interest that you pay to the lender for lending the money to buy the house. “T” stands for taxes to the municipality. “I” stands for the owners Insurance. Finally, “PMI stands for Private Mortgage Insurance.

- Loans Home Owner

Homeowner insurance is a must if there is a mortgage on your house. It is the onlyfinancial security of the largest asset manager of the policyholder. It protects your house, your belongings inside and losses from a disaster. It is your personal liability, which protects you … not the bank.

For example, if your house is damaged or destroyed, or stolen your valuables with you in relation to the insurance and they send a surveyor who assessed the damage and offer an estimate of the cost of repair. If the loss due to theft or vandalism,the evaluators have a detailed list of items stolen or damaged, their value and police reports filed about the theft or vandalism.

- Loans Home Owner

On the other hand, is Private Mortgage Insurance, lenders will require additional insurance by most private buyers who obtain loans, which more than 80 percent of the property value.

Typically, the buyers with less than 20 percent down on a house needed to pay for PMI.

In the mortgage business, it protects the lender against loss if theBorrower defaults on the loan, allowing borrowers have less money, better access to home ownership. Have meaning, you can buy a house with one of three to five percent of payment without having to wait year to save a large sum of money. However, if the lender does not cost that will recover after foreclosure and sale of the property, they 15 percent of what you do not pay at the closing of the proceedings

http://www.loanshomeowner.equitylinesite.com/2009/10/01/home-owners-insurance-vs-private-mortgage-insurance-pmi/

Related Posts

© 2017 Learn About Mortgage. All rights reserved. Site Admin · Entries RSS · Comments RSS
Powered by WordPress · Designed by Theme Junkie