Mortgage Insurance Vestal NY

Mortgage insurance, also called PMI, is the insurance homeowners pay when they do not have an adequate down payment for their homes. This insurance affords some protection for the lender and goes away as the mortgagee pays down some of the loan.


1 . Local Companies

Perpetuities Title Corporation
(607)231-7688
25 Main Street
Binghamton, NY
CBI Inc
607-757-2342
Endicott, NY
NBT Bank - for Customer Service & Account Information- Offices
(607)642-3550
2 North Main Street
NEWARK VALLEY, NY
HCI Mortgage
(607)693-1837
236 Nabinger Hill Road
HARPURSVILLE, NY
Cambridge Company
(607)748-3195
231 Main Street
VESTAL, NY
Nbt Bank Customer Service And Account Information Offices
(607)724-6337
1256 Upper Front Street
Binghamton, NY
Allstate Insurance Tim Lounsbury
(607)687-6848
82 North Ave
Owego, NY
Wells Fargo Home Mortgage
(607)797-1182
520 Columbia Dr
JOHNSON CITY, NY
IPI Skyscrpaer Mortgage
(607)231-5626
19 Chenango Street Suite 806
BINGHAMTON, NY
Cardell Steve Insurance
(607)754-5466
3306 East Main Street
ENDICOTT, NY

2 . Paying For Mortgage Insurance

Chances are you will not have any say in finding your mortgage insurance, or PMI, policy. Instead, your lender will choose the policy. Many people get confused by PMI because it does not work the same way as other types of insurance. You, as the homeowner, are paying for the mortgage company's insurance policy. While that may seem unfair, it is the price you are paying for the lender giving you money without any proof that you will pay.

The lender chooses a mortgage insurance company for all their mortgagees who do not put down the required payment. This mortgage insurance company will have a fairly standard policy regarding how much each homeowner will pay, and this payment typically is based on the value of your home and no other factors.

Escrowing the mortgage insurance, which means paying a portion of the premium monthly with your regular mortgage payment, usually is the only option you have. While you can choose not to escrow taxes or homeowners' insurance, you will need to pay the mortgage insurance directly to your lender each month, and then he or she pays the insurance company using your money.

Mortgage insurance may seem unfair, but it allows some people who otherwise would not be able to save a down payment to purchase a home on their own.

3 . Understanding Mortgage Insurance Versus Homeowners' Insurance

Mortgage insurance and homeowners' insurance are not the same, though it is easy to confuse the two. Homeowners' insurance is something you get on your own. It requires calling around and getting quotes, then choosing the best policy. Homeowners' insurance covers your costs if something happens to your house, such as a break-in, or some natural occurrences, such as tornadoes, destroy your home.

Mortgage insurance, on the other hand, is insurance for your mortgage company in case you default on your mortgage. This insurance, also called private mortgage insurance (PMI), is a type of insurance people are required to get if they do not put down an adequate down payment, which typically is 20 percent of the cost of the home. In times past, few people got PMI because most lenders did not permit less than a 20 percent down payment, but during the recent housing boom, this type of insurance became commonplace.
The mortgage lender needs some assurance that he will get his money back if you cannot keep up on the payments for your loan. Mortgage insurance is a way to help ensure the expense for your lender. Mortgage insurance typically is a percentage of the cost of your home, and it can get very expensive for larger homes, making a down payment even more attractive for you.

4 . Getting Required Mortgage Insurance

For most homeowners, there is little they need to do in order to get mortgage insurance. The lender typically has the insurance policy already set up as a standard part of the lending agreement in cases where the homeowner does not have an adequate down payment. The homeowner has little choice in the matter, but that does not mean she cannot ask questions.

Your mortgage broker should explain the PMI process and how much you can expect to be paying before you begin looking for a home. Because mortgage insurance can add a fairly hefty sum to the monthly payment you will be making, educating yourself about the policy the mortgage broker uses is necessary to help you estimate the home you can afford.

Ask your mortgage broker now about any questions you have. You also can ask for documents related to the mortgage insurance, including how much you will pay, how it will be collected, and when it will stop. Knowing these policies ahead of time can save you a significant amount of money and stress in the long run because you will be making your mortgage decisions based on a full picture.

Beyond knowledge, though, you should need to do little for your mortgage insurance. Chances are good that your lender will take care of the details for you.
Related Articles
- How to Follow the Mortgage Accelerator Plus Program Vestal NY
We were taught to pay our mortgage payment entirely the wrong way. Using mortgage acceleration strategies, you can save thousands of dollars in interest and payoff your mortgage in 1/3rd the time using the money you already make and not changing your lifestyle.
- How to Compare Mortgage Programs Vestal NY
- How to Understand a N.I.N.J.A. Mortgage Vestal NY
- How to Avoid Foreclosure by Knowing Your Mortgage Type Vestal NY
- Green Mortgages Vestal NY
- How to Choose a Mortgage Broker Vestal NY
- Flexible Mortgage For Self Employed Vestal NY
- How to Talk to Mortgage Lenders Vestal NY
- Advantages and Disadvantages of Refinancing Vestal NY