Don’t jump at the first offer you get when you are shopping for housing finance. Take a long and hard look at all the options before you. Of course, you may not qualify for the option that suits you best or which fits your needs and your pocket. Still it is critical that you get the most competitive rates and the program that fits your needs and paying ability the closest. However, once you have chosen your dream home and got the necessary funding via a mortgage, you need to secure your home further.
Protect Your Loved Ones Even When You Are Not There
Since accidents and tragedies strike without warning, you want to ensure that your family and loved ones don’t lose their home in case you are unable to keep earning for a period of time or die suddenly. Most mortgage lenders will not flinch at the prospect of evicting a family from their home if misfortune robs them of the family bread earner unexpectedly. You should face such probability and create a safety net for your loved ones by getting mortgage insurance. Remember that lenders will be more willing to give you a loan if they think that repayment has been secured against unfortunate eventualities.
This is a double blessing as your family’s home is secured and the lender knows that the debt will not have to be written off in case of unfortunate circumstances. Ordinary life insurance does not always cover the cost of the home, especially if someone gets cancer or suffers a heart attack. In fact, some banks require mortgage borrowers to get some type of mortgage insurance on their loan. It also ensures that even if you fail to pay your mortgage at the required time, the bank would not be able to sell your property since the insurance will cover the rest of the amount that you owe.
Much Hinges on the Down Payment You Can Afford
Don’t overlook factors like the amount of down payment you are willing to make when you take out a mortgage insurance policy. Apart from that, the total monthly housing cost of yours should not be higher than thirty two percent of the gross income of household as you need to pay at least five percent of the overall price of the property as a down payment to qualify for mortgage insurance. The higher the down payment that you are willing to pay, the lower is going to be the insurance rate.