Insurance Premiums

In a recent article appearing on IndyStar.com*, it was reported that Indiana and Ohio lead the nation in the number of home mortgage foreclosures. As the article describes, there are many reasons for the high mortgage foreclosure rate. Regardless of the reason, one key to avoiding this situation is proper mortgage planning. Unexpected medical expenses or the loss of a job are likely beyond your control, however, you can control the decision regarding your next mortgage. Making an informed and educated decision regarding a mortgage refinancing, second mortgage, or home purchase loan will help you avoid trouble. Remember the following the next time you are shopping for a mortgage.

Term Life Insurance Policy Think Independently - Most children have heard this sage advice. "If your friend jumps off a cliff, are you going to jump, too?".essentially meaning "think for yourself." That same philosophy applies when talking to your loan officer. Just because he/she states that you qualify for a certain mortgage refinancing, second mortgage, or home purchase loan amount does not mean you should accept the loan. Compared to a few years ago, today's lending guidelines accept higher debt to income ratios and/or reduced income documentation, which allows more mortgages to be approved. Remember, you are the one who must make the mortgage payment, not the loan officer. If you are not comfortable with the payment, do not accept the loan.

Previous 10 of 11 Mortgage Application Topics Next Mortgage escrow accounts are special accounts set up in which money is held to pay for property taxes, fire and hazard insurance premiums, mortgage insurance premiums, and other escrow items. Escrow accounts ensure that these items are paid in a timely fashion. They are a guarantee that there is always enough money to pay these bills when they are due so that the homeowner avoids the risk of lapsed insurance coverage or delinquent taxes.

Life Insurance Understand Your Mortgage - It is imperative that you understand the terms of the new mortgage refinancing, second mortgage, or home purchase loan you are considering. You need to know the following:
1) Is the mortgage a fixed or variable interest rate?
2) Is the mortgage interest only, deferred interest, or fully amortizing?
3) Is there a prepayment penalty?
4) Are there any balloon features to the new mortgage?
5) Are the property taxes and homeowners insurance included in the mortgage payment?

Homeowners do not have to worry about coming up with several large, lump sum payments, each with different due dates, throughout the year. Unexpected increases are taken care of. It is the responsibility of the mortgage company to allow for possible increases in tax or insurance premiums. Mortgage companies typically cover shortages when tax or insurance payments increase. It is very common for mortgage companies to pay taxes and insurance premiums when they are due even though all the money for these bills has not yet been collected from the homeowner.

Insurance Life Premium If your loan officer is elusive or gives vague answers to these or any other questions, find a new loan officer. Click here for more information on Mortgage Refinancing and Second Mortgage Solutions.

If you’re buying a home, chances are someone will suggest you buy life insurance—usually mortgage life insurance or term life insurance. Doesn’t really matter which, because life insurance is life insurance, right No way. Since you buy mortgage life insurance directly from your mortgage lender, it's convenient, but you’re certainly paying a premium for that convenience.

Health Insurance Policy Shop - Consult with two or three loan officers about your mortgage refinance, second mortgage, or home purchase loan. You will find a wide range of knowledge and ability among loan officers. At the same time, working with more than three will often lead to information overload. Along with comparing interest rates and closing costs, consider your loan officer's integrity, knowledge, and experience.

According to a report by top mortgage brokers John Charcol, homeowners could be slashing their mortgage bills, not to mention their life insurance premiums, by thousands if they stopped smoking. Charcol estimate that using the extra cash saved by giving up the habit to overpay your mortgage loan could have a dramatic impact over the course of repayments . smokers has been the centre of a number of recent news articles on sites such as lifeinsurance.co.uk. According to a number of experts, smokers could be saving money on their life insurance, health insurance and even car insurance .

Health Insurance These guidelines are simple and common sense ideas, but are often forgotten during the excitement and emotion of completing a home purchase loan, mortgage refinancing, or second mortgage. Click here for more information on Mortgage Refinancing and Second Mortgage Solutions.

To have critical illness insurance it is more expensive so it is best to get two quotes, life cover with and without critical illness, so that you can see the two costs and make a decision on taking life insurance only or life insurance and critical illness. If you have a repayment mortgage you would generally go for decreasing term insurance where the death benefit reduces along with the mortgage. Decreasing term insurance is cheaper than Level term insurance.

Insurance Life Premium Return *www.indystar.com; March 18, 2006; Title "Foreclosures in Indiana Hit New High"; Author Ted Evanoff

Whole Life Insurance Policy Chris France is a professional mortgage planner with over 10 years lending and banking experience. His programs assist clients with increasing cash flow, reducing liabilities and building equity by integrating a client's mortgage decision with their overall financial plan. He is a manager with CFIC Home Mortgage providing both purchase and refinance transactions. Chris holds a B.S. in Finance and is Fair Credit Reporting Act certified. Click here for more information on Mortgage Refinancing and Second Mortgage Solutions.

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