Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
How Good a Deal Is Your Banks Mortgage Insurance Plan?
When you go to the bank to get a mortgage, you'll inevitably be asked to take out mortgage insurance. The idea behind mortgage insurance is simply that if something happens to you or your spouse then your loan will be paid off which is good news for your family and the bank. Most financial institutions act like they are doing you a favor by offering you mortgage insurance through their own group plan, but are they?
The truth is that you could probably get a much better deal and at least an equal amount of protection by shopping around for your own insurance policy.
Essentially, mortgage insurance is no different than term-life insurance. With both, your policy only lasts for a specified period of time and pays its benefits if something happens to you or your spouse. The real difference comes down to how much control you'll have over your policy and how much you'll pay for it.
If you choose to use the mortgage insurance offered by the bank, you will not be able to customize a policy to fit your needs and you'll be lumped together with other borrowers under a group plan. Because of this, you will only have limited control over your policy. For example, through a third party provider, you would be able to choose your own beneficiary, decide how to spend the proceeds if necessary, and cancel the policy at any time. You would not have these options with a lending institution.
Additionally, the bank maintains the right to not renew your policy and to cancel the policy when you sell the house. If you find your own insurance provider, you can make those decisions yourself.
The other big difference is cost. A third party insurance policy's premiums will not go up, so you would pay the same premium today that you'd pay ten years from now. You won't get that same guarantee from a bank which can and probably will increase your premiums during the life of the policy. In most cases, you'll probably pay more through a bank anyway. In fact, you could pay as much as 40% more than you would if you shopped around and found your own insurance provider. Not to mention that the policy you take out through your bank will gradually decrease in value while a plan you select from an outside source will be worth the same amount during the entire policy period.
Of course, many people don't mind paying more for their mortgage insurance because it's more convenient than dealing with insurance agents. The truth is that you can easily find a policy that fits your needs and provides affordable premiums via the Internet. An organization, such as the Hughes Trustco Group, can even generate quotes for you from multiple insurance providers so you'll know that you're receiving the best deal possible on the policy you want.
The bottom line is that mortgage insurance is important and should be part of your home buying or refinancing preparations, but that does not mean you need to pay more or let the bank make important decisions for you. Instead, you should find your own personal plan from a third party provider which will let you stay in control of your policy and will save you money in the long run.
Ivon T. Hughes, The Hughes Trustco Group Ltd. Canadian Insurance Broker - Get a FREE Quote TODAY! Tel: (514)842-9001 Email: firstname.lastname@example.org Web: http://www.trustco.ca
MORE RESOURCES updated Tue. September / 22 / 2020
Mortgage and refinance rates today, September 21, 2020 | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
How to refinance your mortgage in 5 easy steps Fox Business
Mortgage lenders are adding the refinancing fee. You can still avoid it if you act now. - Bankrate.com
Mortgage lenders are adding the refinancing fee. You can still avoid it if you act now. Bankrate.com
A record number of borrowers can now save on a mortgage refinance, as rates set another historic low - CNBC
A record number of borrowers can now save on a mortgage refinance, as rates set another historic low CNBC
How to refinance your mortgage without closing costs Fox Business
How often can you refinance your mortgage? Fox Business
Mortgage and refinance rates today, September 16, 2020 | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Mortgage and refinance rates today, September 16, 2020 | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Mortgage and refinance rates today, September 15, 2020 | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Mortgage and refinance rates today, September 15, 2020 | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
How and Why to Refinance Your Mortgage: A Step-By-Step Guide ActionNewsJax.com
Refinance your home before December 1 to avoid paying a new fee Business Insider
Should you refinance your mortgage? Tennessean
Mortgage Refinance Calculator Clark.com
Complete Checklist of Mortgage Refinancing Requirements Credible News
When Should I Refinance With a No Closing Cost Mortgage? Clark.com - Clark Howard
Today's best mortgage and refinance rates - Tuesday, August 25, 2020 Business Insider
CardMatch™ | Bankrate Bankrate.com
Clark Howard’s Special Rule for Refinancing Your Mortgage Clark.com - Clark Howard
15-year mortgage rate hits new record low Bankrate.com
Millennials drive huge VA home loan refinance boost in Hampton Roads - The Virginian-Pilot - Virginian-Pilot
Millennials drive huge VA home loan refinance boost in Hampton Roads - The Virginian-Pilot Virginian-Pilot
The Uncommonly Strong Case For Locking a Mortgage Rate Mortgage News Daily
U.S. mortgage rates hold steady at historic low mark Dayton Business Journal
Home buyers: It could pay to wait out for the housing market to open up some more in 2021 - USA TODAY
Your weekly real estate roundup: Atlantic City condo, prepaying on your mortgage, Will Forte's house and more - Press of Atlantic City
Your weekly real estate roundup: Atlantic City condo, prepaying on your mortgage, Will Forte's house and more Press of Atlantic City
5 steps to take after paying off your credit card debt FOX 10 News Phoenix
Fannie's Forecast Sees a Brightening Recovery Mortgage News Daily
Mortgage refinance: Everything you need to know Fox Business
U.S Mortgage Rates Hold Steady thanks to the Dovish FED Yahoo Finance
10 ways to save money on a tight budget Bankrate.com
It’s a Great Time for Co-ops to Refinance, If… Habitat magazine
Mortgage Applications Dip in Mid- September World Property Journal
When should you refinance your mortgage? Fox Business
How to get the best mortgage refinance rates Fox Business
10 things to know before refinancing your mortgage Fox Business
State firm caps cheap mortgage at Sh4 million Business Daily
Don't let mortgage rates distract you. You should also consider this when refinancing - Fox Business
Fed's mortgage-buying spree at $1 trillion with no end in sight Pensions & Investments
Lenders Upbeat About Profits, Loan Demand Mortgage News Daily
Student Loan Refinancing Rates Hit Another New Low Credible News
Compare Today's Mortgage Refinance Rates: Sep 21 Credible News
How to get a low-cost mortgage refinance Bankrate.com
Mortgage refinancing is about to get more expensive Pittsburgh Post-Gazette
How does mortgage refinancing work? Bankrate.com
Refinancing Your Mortgage? Those Rock-Bottom Interest Rates Aren’t for You - The Wall Street Journal
Refinancing Your Mortgage? Those Rock-Bottom Interest Rates Aren’t for You The Wall Street Journal
What Is a Mortgage? Everything to Know About Home Loans Credible News
Mortgage refinance applications spike 79% as homeowners rush to take advantage of lower rates - CNBC
I refinanced my mortgage during COVID-19, and thanks to low interest rates I'll save about $50000 - Business Insider
I refinanced my mortgage during COVID-19, and thanks to low interest rates I'll save about $50000 Business Insider
Rushing to Refinance Your Mortgage: 6 Tips and What to Avoid The New York Times
Should I refinance my house? Mortgage rates drop to 50-year low as coronavirus spreads across the U.S. — and the world - MarketWatch
Should I refinance my house? Mortgage rates drop to 50-year low as coronavirus spreads across the U.S. — and the world MarketWatch