MORTGAGE INSURANCE 101

Buying a home is not only an exciting adventure, but for some it is the path to financial security through personal equity. For this reason, it is extremely important that when you are preparing to buy a home that you understand fully all the costs associated with the process and the home itself. Unlike renting, homeowners who finance their home are required to hold at least two different kinds of insurance, homeowners insurance and mortgage insurance. These two policies are very different and both add to your monthly payment on the home. Homeowners insurance is pretty simple to understand, since it usually mirrors the kind of renters insurance you probably previously had only with more coverage. Mortgage insurance is not so clearly defined for some and is often loathed by homeowners. Here we will examine exactly what mortgage insurance is, who needs it, and how to reduce or eliminate your payments…