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Norma Said:

Mortgage Insurance?

We Answered:

Mortgage insurance does not help the borrower in any way. Mortgage insurance is insurance the lender has on the loan in case of a default. The borrower pays the costs of the insurance. Usually, a 20% down payment will eliminate the need for any mortgage insurance unless you are getting an FHA or VA loan. It is not the type of insurance that will pay your payment if you loose a job or become disabled. You may want to contact your insurance agent to see if they can recommend or if they offer the kind of insurance you are looking for. Sometimes the lender will send you information after you close giving you the option to get other types of insurance on your loan. This is usually done thru a 3rd party company. The one good thing about mortgage insurance is that it may be tax deductible for you. This will depend on your adjusted gross income on your 1040. I believe if you have 100K or less adjusted gross income, this is deductible. Check with your accountant to make sure you can take this deduction. You may be able to get your mortgage insurance eliminated after you have 20% equity in your home.

Alma Said:

mortgage disability question?

We Answered:

You would get shot down pretty quick by the insurer. As soon as they look into the claim, they'll realize that he was disabled prior to the increase in coverage, so that they probably wouldn't cover it since they're not actually collecting any premim before the disability occurred.