“In Canada, Mortgage Brokers MUST offer Mortgage Life Insurance with every mortgage they place. We are not insurance people but, even if we don’t believe in the product, we are legally bound to offer it. I would rather advise my clients to talk with a Financial Planner who, as an expert in the field, will [...]
Archive for August, 2009
Private Mortgage Insurance policies can be categorized into 2 types – (1) Borrower-paid PMI and (2) Lender-paid PMI. Each of the 2 types is discussed below.
Borrower-paid Private Mortgage Insurance: It is a type of Private Mortgage Insurance policy wherein the borrower pays the insurance premium. Generally, a mortgage borrower needs to purchase this policy when [...]
Opting Out of Private Mortgage Insurance: It is possible to avoid paying Private Mortgage Insurance altogether if you choose to negotiate with more than one private lender. With this process, it is possible to place 80 percent of the price of the property and place it in a first mortgage and then take another ten percent and [...]
A home is an investment but the money you spend paying PMI is just that, a payment. It is not an investment. However, if you are able to obtain a loan without paying PMI, the same money you would’ve spent on the PMI could be used to invest in something on which you could earn [...]
What is private mortgage insurance? In the simplest of terms, private mortgage insurance, which is often abbreviated as PMI, is insurance for your mortgage loan; like car insurance protects the bank that owns your vehicle in the case that you damage the car, PMI protects your mortgage lender in case you default on your loan. [...]