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Katie Said:

How do you access mortgage insurance if you are unable to make a payment?

We Answered:

You don't! While you do pay, it is to protect the lenders position not yours! If they have to file bankruptcy. The insurance helps them not you! Now to address the real issues. If you can't pay and have a good reason...you should contact the lender and talk to them about your situation. The phone number is on the monthly statement. Don't speak to the collection department that is just an exercize in futility they get paid to COLLECT! See the problem? Find a way to speak to the loss mitigation department. Find a local REALTOR who specializes in Loss mitigation. You may e-mail me and I can refer you to someone who can help who doesn't charge you anything up front. You never pay a loss mit consultant who comes to your house! Never! You only pay the bank and they pay us. Watch what you do there are scams out there! Good Luck.

Hazel Said:

Mortgage Insurance ?

We Answered:

Mortgage insurance is also called decreasing term. It's for the remainder of the mortgage, if you die, and only pays the payoff. It costs MORE than regular term.

So, you're BETTER off if you buy a level term policy - it's cheaper, and it DOESN'T decrease each year.

There's ALSO disability coverage. It's a different policy, and depending on your ages/health, it can be pretty expensive. Unemployment is NOT a private coverage in the us, you can ONLY get it through your state unemployment office.

Talk to your agent that does house and auto - ask him if he sells level term coverage, and/or disability coverage. If he doesn't, ask him for a LOCAL referral. IF you're with a direct writer, ask a neighbor or friend who their local agent is.

I really really strongly recommend dealing with a local agent. If you can't find one, these guys are pretty good, and licensed in most of the 50 states: www.zanderins.com

Kurt Said:

Mortgage insurance?

We Answered:

You should not be if you say the magic formula truth in lending act .

Eva Said:

My Mortgage Insurance was financed with the home and does not appear on 1098, can I still deduct it?

We Answered:

Dear Eva: You can deduct it but you may need proof of payment by the IRS. Contact your lender or provider and get documentation. If you paid it, deduct it.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more Errol Quinn Enrolled Agent

April Said:

mortgage insurance?

We Answered:

Mortgage insurance is a policy paid for by you that guarantees the lendor that if you shoudl default on the loan that they will at least get repaid what the loan amount is.

This is required on all loans where the downpayment is less than 20% of the price of the house. The reason for this is in case the value of the house drops and you end up owing more on the house than it's worth and then defaulting on the loan.

After you have carried PMI for 2 years, you can have the ratio re-evaluated and if you owe less than 80% of what the property is worth, then you can drop PMI. You will have to pay for an appraisal out of your own pocket, though (about $300-400), so keep up with the market in your area so you have an idea of what it is worth.

If your appraisal comes back and shows that the loan is less than 80% of the appraised value, mail a copy of the appraisal and a request to the mortgage company to drop the PMI. You must, however, carry it for at least 2 years.

PMI will automatically be dropped once the mortgage balance reaches 80% of the original appraisal on the house. Federal law requires this. However, if your house is appreciating at a fast rate, you will be wise to hire an appraiser and have it dropped. The mortgage company only keeps up with the balance on the mortgage. They do not keep up with the increase in the value of the property.