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Daryl Said:

Which mortgage insurance should I get?

We Answered:

Mortgage insurance pays off your mortgage, if you die. I think you're REALLY talking about homeowners coverage.

And, it should really be specifically tailored to YOUR needs. I don't know if you have a fur coat you need to insure. I don't know if you have a business in your home. I don't know if you're in a flood plain. You really need to sit down with a local agent, and talk to them about what coverages you need, and what's the most cost effective way to get it.

The price is going to depend on the house, and how much it costs to rebuild it, along with which coverages you need.

Jill Said:

Cost of 2 Mortgage Insurance Premiums added in to Total Loan amount and in with settlement charges?

We Answered:

You are right to check the statement over before going to closing. Just call the closing attorney. It may just be a mistake. Good luck.

Terrence Said:

Average utility and insurance cost Orland Park, IL?

We Answered:

if you go to www.realtor.com, they can give you an idea. Condo unit owners should cost you just under $300 a year for $30,000 of contents coverage.

Stephen Said:

Is the deposit on a mortgage just that or...?

We Answered:

I assume from the terminology that you are in the UK, so;

Conveyancing Costs - you'll need to pay your solicitor after you have completed (some ask for a deposit upfront). Their bill will include their fee plus all of the searches and registration costs.

Stamp Duty - is a separate payment to your solicitor after completion, which he/she in turn will pay to HMRC.

The Valuation and Survey Costs - some remortgage deals will include the cost of a mortgage valuation (which of course you ultimately pay for through the higher interest rate), but you will more than likely have to pay the cost of the valuation if you are purchasing a property. If you want a Homebuyers Report or full Structural Survey, you'll need to pay for that separately. You will usually pay the fee to the mortgage lender, or you can instruct your own surveyor but make sure that the company you use is acceptable to the lender first, or you could end up paying twice.

Mortgage Lender's Application Fee - most lenders will allow you to add all or most of the fee to the mortgage, although it's advisable to save up for it and pay it upfront so you won't be paying interest on the fees.

Land Registry / Local Authority Search Fees - will be included in your solicitor's bill and will have to be paid separately.

Insurance Costs - you'll need to have buildings insurance in place when you exchange contracts as you assume the liability for purchasing the property from that point onwards. Most people will take out buildings & contents insurance (although the contents part is not obligatory). You will need to find this yourself - or your mortgage broker can - and pay the premium direct to the insurance company.

Whether you need life insurance, critical illness cover or income protection depends on your own circumstances, but you will need to pay the premiums separate to the mortgage.

Mortgage Indemnity Insurance - most mortgage lenders don't charge indemnity insurance any more (mainly because they won't lend a sufficiently high loan-to-value to warrant its inclusion). If it is charged, you can usually add to the mortgage although, again, it's advisable to pay it upfront. Better still, get a deposit of at least 20% and you won't need to worry about it.

Buildings and Contents Insurance - see insurance costs.

Mortgage Payment Protection Insurance - not a compulsory insurance and in any event only pays out 12-24 months mortgage benefit if you fall ill or have an accident and can't work. You'd be better off, in my opinion, with Income Protection which insures your salary and ensures that you can continue to pay the mortgage until you either return to work, retire or die.

All the other costs you mentioned are incidental to the mortgage and you will need to find the costs yourself.

I hope this helps. A good mortgage broker should talk you through all of this and be able to give you an idea of the costs and how much you could afford to borrow.

Good luck.

Richard Said:

Do you purchase homeowners insurance for the cost to rebuild or the amount of the mortgage?

We Answered:

You can easily check your quotes in internet, for example here - homeinsurance.awardspace.us

Marion Said:

How much should a mortgage insurance premium cost in a refinance. Is a website that offers free advice?

We Answered:

The interest rate and the fees they are charging you are ridiculous.

I recommend that you cancel the transaction and start over with your credit union if you are a member of one or the bank where you have your savings and checking accounts.

I recently refinanced my house. I started with an online broker that claimed to have extremely low interest rates and low fees.


At the sign off I discovered that the loan terms the rates and the fees were completely different from what I had been told all through the process. the interest rate that they had was absolutely outrageously high.

I walked out of the title company halfway through the sign off and took all of the documents with me so that they could not possible put through a loan.

I then went back to the bank where I have my savings and checking accounts. They offered me the option of a 5.25% 15 year fixed rate loan or a 30 year 5.75% fixed rate loan. I chose the 15 year fixed because of the lower interest rate and I can afford the higher payments.

Unless your loan amount is over 80% of the fair market value there should be no mortgage insurance premium.

Also you should be able to pay the loan amount down to less than 80% of the fair market value and have the mortgage insurance premium removed.

the terms of this loan that they have given you do not look good to me.

I recommend that you cancel this transaction and start over with your credit union or the bank where you have your checking and savings accounts.