October 16, 2008
Do you have to get mortgage insurance when buying a house. not house insurance, mortgage insurance?
WELDER asked:
isn’t mortgage insurance for if you die, the loan will be paid off? if so wouldn’t life insurance do the same, so why is mortgage insurance needed. Must you have it or is it just a option?
isn’t mortgage insurance for if you die, the loan will be paid off? if so wouldn’t life insurance do the same, so why is mortgage insurance needed. Must you have it or is it just a option?
Filed under Other - Home & Garden by admin
Comments on Do you have to get mortgage insurance when buying a house. not house insurance, mortgage insurance? »
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.
You do not have to get it, but it is a good idea.
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