Stonebridge Life Mortgage Insurance...

Many people avoid thinking about insurance. You could get different types of quotes for example one direct from an insurance company, another from a broker who keeps a database of quotes, and a few from the internet for Stonebridge life mortgage insurance . When you first look into purchasing a home, the paperwork, terminology and details can be overwhelming. Mortgage insurance is one aspect of home buying that is confusing to a prospective home buyer. Many individuals have never heard of mortgage insurance and do not know what it is. Mortgage insurance is easily confused with home owners insurance and mortgage life insurance.

Mortgage insurance is simply insurance that will protect your lender if you ever stop making your house payments. Mortgage insurance helps many first time home buyers purchase a home. If you cannot come up with the 20% that is required to put down on your home, mortgage insurance will enable you to still purchase a home. Mortgage insurance allows many home buyers to purchase the home of their choice with a low down payment; sometimes only three to five percent is required as a down payment.

If you already own a home, mortgage insurance can allow you to “trade up.” Mortgage insurance allows many first time home buyers, and many who are trading up to a larger home, to keep more money in their pockets. This money can be used for moving expense, upgrades to the home, and more.

Premiums for mortgage insurance are usually added into your monthly mortgage payment. Your premium will be based upon factors such as the type of mortgage you are obtaining, your credit history, the amount of coverage, and the size of your down payment. Mortgage insurance is set up to cover the first 20-30% of your loan. Once you have paid your home down to that amount, you can usually drop your mortgage insurance.

Mortgage insurance is not insurance that will pay off your home if you happened to die. That is mortgage life insurance. Mortgage insurance is not home owner’s insurance, either. Home insurance covers damage or theft which occurs at your home or on your property. Mortgage insurance is compared to FHA mortgage insurance. The difference is mortgage insurance is private, and not government based. Mortgage insurance can cost less. FHA insures 100% of your mortgage, while private mortgage insurance typically only covers the top 20-30% of your loan.