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Jonathan Said:

Housing loan insurance coverage? my big problem pls. help?

We Answered:

First take the rejection letter photocopy from the bank > go to insurance company which has rejected your proposal > take information, why they have rejected > than only you can start your action.

Renee Said:

On a end loan. Do I have to have my property taxes and house Insurance added in on my monthly payment?

We Answered:

This will probably depend on how much equity you will have in the property.

If the LTV (loan to value) is more than 80%, then your lender will probably require you escrow for property taxes and property insurance.

If you have at least 20% equity in the property, you may be able to avoid escrowing for property taxes and property insurance. With all the upheaval going on, it is possible that some lenders will require an escrow account anyway.

If you have more than 20% equity, you can probably shop around for a lender who will not require you to escrow for taxes & insurance.

Amber Said:

Question about house building loan and related insurance.?

We Answered:

1. Its your choice whether you want to avail the insurance jointly or in the name of a single person.

2. In case the Life Insured dies the Sum Assured will be paid out. (if it is equal to the loan amount, then the complete remaining loan amount will be paid out)

3. Some banks insist on joint cover

4. Its advisable to go for joint cover, even the average cost of coverage comes down

5. There are 2 types of cover available. a) Flat Cover - The Sum Assured remains constant and gets paid out in full in case of death. b) Reducing Cover - The Sum Assured reduces every year. At any point of time it is equal to the outstanding loan amount.

6. Reducing Cover is cheaper obviously.

7. Incase, there are no othert major liabilities, thena reducing joint life cover will be apt in most cases.

8. The loan is closed (or Sum Assured is paid out) only in the case of the death of the Life Insured. Therefore what it means is that if the me and my wife take a joint loan and the Insured person is me and my wife dies, even then I have to repay the loan. Hence point 7 is crucial.

I sincerely hope this answers all your questions

Carolyn Said:

my father died about 16 years ago and my mother paid out their housing loan with his super fund ,?

We Answered:

She needs to get in touch with whoever she thought they had loan insurance with and enquire. Or if she can find the loan paperwork and see what they were covered for exactly then she can approach them about a payout. But 16 years may be too late for it to be considered.

When my husband died I had an insurance company get in touch with me about a policy that I didn't even know we had.

Colleen Said:

What is the relation between AIG insurance loss and housing bubble?

We Answered:

Insurance is a tiny fraction of AIG's financial services. AIG invested in bundled loans that are now bad.

AIG will likely be broken up into its component parts.

Gordon Said:

FHA loan insurance premium is tax deductable?

We Answered:

In some states, PMI is tax deductible.

But if you're talking about regular homeowners insurance, for the house you live in, that is NOT tax deductible. The premium will be dependent on how much coverage you need, and ALL lenders are going to want you to insure for 100% of the cost to rebuild the house, or the full amount of the loan, whichever is less.

Irma Said:

the banker said that we would have to pay $100 extra a month for the insurance on our house loan?

We Answered:

Yes, this is called mortgage insurance. If you have less than 20% cash down your lender may require mortgage insurance. After a history of regular payments it is possible to get the requirement dropped or you can refi. Yes, it is possible to obtain a loan without mortgage insurance, but you may pay a higher rate. Shop around a bit and make sure you read the fine print. Avoid loans with adjusting rates, balloon payments, and heavy pre-payment penalties. Those loans will cost you more than the $100/month.