What is PMI?
PMI (private mortgage insurance), is usually required by lenders if you do not put down, at least, 20%. If you get a loan which requires a lower down payment, you will probably be required to add this coverage in. What does PMI do? It products the lender in case you default on your note. It does not protect the borrower, but it protects the lender. Do I need to write that again? PMI protects the lender in case you default on your mortgage.
Why Avoid PMI?
This may seem like a small price to pay if you do not have a twenty percent down payment. In fact, it may be the best – or only – option for some buyers. However, in these days of mortgage problems, you may want to take at some reasons to avoid this coverage if you can.
Cost of PMI
This coverage usually costs about 1% of the loan value every single year. If you have a $200,000 loan, you are paying $2,000 a year to protect your mortgage company. That is very generous of you. But if you feel the need to donate money, I can suggest several charities [...]
Homeowners Insurance Calculator Online
We get a lot of requests for a homeowners insurance calculator. We have split those requests into two general questions people want to figure out.
How Much Homeowners Insurance is Needed to Cover a House? How Much Does Homeowners Insurance Cost?
These are two different questions, and the answers will vary by your neighborhood, the costs in your area, and many other individual factors. However, we do believe we can help you figure this out! Of course, you can also find an isurance agent to give you more information.
Most homeowners insurance calculator forms online give such general estimates that they will not be accurate for your particular zip code, home type, etc. You could visit here: free homeowners insurance rate calculator.
How Much Homeowners Insurance Do You Need?
Most of our claims, we hope, are for minor things. We hope we never have so much damage that we have to rebuild our homes. But this is the worst case that has to be considered! And you need to think about how much it will cost to rebuild your home, and not how much it would take to simply buy another home that has already [...]
Buried Under High Insurance Bills?
I wonder if all of the new stimulus bill homeowners considered the cost of coverage when they calculated their monthly expenses. I know that attractive mortgage payments are usually jacked up by as much as 1/3 when taxes and insurance premiums are added in as part of a monthly bill to pay. This article got me thinking about it: first time homeowners insurance policies. Add the new cost of insuring a house to existing auto, health , and life bills, and it can feel as if a large chunk of money goes to some insurance company every month!
Tips to Lower Homeowners Insurance Rates
If you are struggling with your bills, or even if you would just like to shave some of them so you can save more money every month, it may be time to analyze your policy. Besides, experts tell us we should evaluate all of our coverage every year or so. Our circumstances change, and so does the market from which we purchase policies.
Shop Around – Understand that insurance policies are local. Not all companies do business in every state, county, or zip code. Furthermore, rates are also set by [...]
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