August 04, 2008
I was browsing the internet yesterday and I was enjoying the various articles about personal finance that I've found. One interesting website that I discovered is this one that features assurance vie hypotheque. They have a great tool in there that can automatically calculate mortgage insurance premiums. It's really handy!
What is mortgage insurance anyway?
Well, for your information, mortgage insurance is often required by the lender to protect it against a loan default by the borrower who makes a low down payment (less than 20% of the sale price for example). If the borrower defaults, the mortgage insurer pays the lender its money and then seeks to recover from the borrower or forecloses on the property. The premium can be paid monthly or in one large payment. (As a corollary, make sure that your lender will cancel the insurance and/or refund unearned premiums if your home equity goes up or you sell the property.) Mortgage life insurance pays off the balance of your mortgage when you die.
Moreover, did you know that a lot of people are not aware that they are allowed to change mortgage insurance without going through the need to modify their current loan? I advise you to spare a few seconds of your time visit this website and compare the insurance rates available on the market.
By entering some values and checking your existing rates, I'm sure you'll be surprised how much money you can save by doing this.