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Daryl Said:

Why do people choose to separate mortgage, prop tax, insurance payments?

We Answered:

The mortgage company benefits from your escrow account, meaning that you're allowing them to hold your money, thus they make a percentage off that money, cause it's in savings. Some people prefer to put the tax and insurance money into their own savings account, so they can make a little off of it, as opposed to the bank.

I'd rather have my own savings account for these things and benefit from the savings rate than have my mortgage company do it. It's not that difficult to pay taxes and insurance yourself. Everything is done online.

Think about it...if the mortgage company has 100,000 mortgage loans out to people, and each one on average hands over $400 a month for their escrow accounts, that's $40 million dollars every month the mortgage company holds in escrow for everyone. AND THEY ONLY PAY TWICE A YEAR IF YOU'RE LUCKY. Who's benefitting from all that money in interest? NOT YOU that's for sure.

Christy Said:

Does FHA mortgage insurance make payments if I lose my job?

We Answered:

No...this insurance is only for the lending institution.

Copied from Money Alert Website:

"Private Mortgage Insurance (PMI) is insurance that protects your lender against non-payment should you default on your loan. It's important to understand that the primary and only real purpose for mortgage insurance is to protect your lender—not you."

Your brother-in-law may have purchased an outside insurance in case he lost his employment. FHA PMI does just as stated above.

Best of Luck

Judith Said:

Should I sell some investments to make payments easier for a new mortgage?

We Answered:

take the quick cusion and put it in an online savings bank. good luck. 12% 12 years straight i'm impressed good job.