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Further
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Google IPO and its effect on the Venture Capital Industry - Keith Henry
“Will the Google IPO have any impact on the Venture Capital market?” FundingPost ( http://www.FundingPost.com ) surveyed 32 Venture Capitalists and Angel Investors for their opinions. FundingPost is happy to share these responses from leading...
How to Get Fast Cash without Breaking the Bank - Caterina Christakos
Many of us rack our brains for the perfect job or business opportunity to bring in extra cash. We think that we need to come up with some brilliant plan to earn the money for a nice vacation, down payment on a car or some extra cash for our kid’s...
Avoiding A Bad Investment Is Easier Than You Might Think - W Troy Swezey
Human nature being what it is, none of us can get serious about the idea of buying a house without experiencing at least a few small twinges of worry. What we fear, of course, is making a mistake. And the mistake we tend to fear most is buying a...
Advances in Print Technology: What about? - Marlon D Ludovice
A number of dramatic technological innovations have been added greatly to deal with the character of printing process. Linotype is a method of creating movable type by machine instead of by hand and was introduced in 1884 which marked a significant...
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Homeowners’ insurance: The mortgage connection
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Written By:
Smith
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A home owners’ insurance is the cover for the house against natural calamities as well as liability. This covers the house and its contents but also other personal possessions which the house secures. The natural calamities include fires and winds. It covers thefts and vandalism as well. It is also called hazard insurance (http://www.mortgagefit.com/hazard-insurance.html)
It is not mandatory, like in the case of automobile insurance to have a homeowners’ insurance. But when one mortgages, the deed of trust or mortgage requires the collateral to be insured. This is because in the event of a default, the lender must not suffer. If in the time span the house gets damaged due to a wind or accident, the value on sale will decrease and thus the lender will not be able to get back the debt balance.
Why does the lender insist on a homeowner’s insurance?
Firstly, the lenders’ name or the mortgage company appears on the certificate of the insurance policy. The lender is categorized as a ‘loss payee’ or a mortgagee. This ensures that the lender is entitled to the insurance amount if the borrower defaults.
Secondly, the insurance premiums are paid little by little along with - continued below ...
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the monthly obligations or it is deposited in with impound or escrow account. In both cases the lender can earn the interest which is earned out of this amount. Moreover an escrow requires an amount much more than a single premium to fund the account.
The manner of payment of the insurance premiums differs from lender to lender. Some require that the insurance premiums be paid off in the first year after closing; while others will spread the same throughout the loan term.
What you should keep in mind before taking a homeowners’ insurance?
You should shop for an insurance agent extensively .You must go in for an insurance company which will make an honest evaluation of your home value.
This insurance is not only for a liability security it is important to the borrower as well especially if you aim for a refinance or a remortgage. The collateral remains the same .Thus you can still avail of a loan amount equal to the earlier mortgage amount if not more (due to appreciation).
For a detailed study of mortgage and such other terms you can log onto:
http://www.mortgagefit.com
About the Author
Smith has completed her Masters with a specialized paper in Mortgage.
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Five Things Smart Leaders Do to Lower the Barriers to Change - Guy Harris
Smart leaders understand that they don’t “make” a change happen. They recognize that the people in their organization do the work, change behaviors, and, ultimately, make the change happen. They understand that their role is to make the change...
Price your eBook to Sell Well - Judy Cullins
Q. The big question asked me in teleclasses or client sessions is "How should I price my eBook? A. The big answer is "it depends." Here's seven tips to help: 1. Determine your audience's need and demand for your book. If your book solves...
How to Hire the Right People - Lorraine Pirihi
One of the biggest challenges any business owner or manager has is hiring the right people. I've recently discovered a simple, inexpensive yet very effective way which will help you get it right. This week I've asked Nathan Chanesman, Managing...
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