Is it necessary to purchase mortgage insurance when buying a home?
sweetie asked:
I will be sole owner of a home. In the event that I die and do not have mortgage insurance will the bank be the beneficiary of any equity that I’ve put into the home?
I will be sole owner of a home. In the event that I die and do not have mortgage insurance will the bank be the beneficiary of any equity that I’ve put into the home?
June 27th, 2011 at 8:15 pm
You should have a will that will state who your property goes to if you die. Some mortgage holders will require mortgage insurance.
June 28th, 2011 at 7:58 pm
if you are in America, PMI is required if you do not have a serious cash down payment [20% or more]. Should you die, etc., PMI pays off the mortgage only and then attempts to recover the funds from the sale of the house. “The bank” doesn’t get the excess value of the house over the loan amount, BUT ….
as should be obvious in this market for homes, prices may continue to go down and you could well have zero or negative equity in the house even as long as seven years down the road. Pls remember that the cost of selling is about 10% of the price and that a forced sale [due to untimely death] is frequently at a lower price than “normal” — so the PMI firm has its work cut out for it to recover its funds on the deal.
July 1st, 2011 at 8:31 am
It is much advisable to take mortgage insurance as this would make your family easy to inherit the property after you. Nothing to worry with mortgage insurance, as you could find best possible rates in websites like
July 2nd, 2011 at 6:39 am
I believe the mortgage insurance you’re talking about is insurance in case of death or disability and you’re unable to pay the mortgage off. This insurance is offered usually through a third party vendor and not offered through the lender. You’ll want to read the policy carefully, but I’ll recommend you pass on it. It’s usually expensive and the coverages aren’t sufficient.
July 2nd, 2011 at 1:08 pm
homeinsurance.awardspace.us – try this one. Got my home insurance from them. As I know they provide such a service.
July 4th, 2011 at 3:12 pm
It’s depends on your age and where you live as well, type of car, etc. I would shop insurance coverage online and get quotes from various insurance companies. Try a reputable site like: