| There are varieties of reasons someone may fail | | | | However, homeowner mortgage insurance can be |
| to meet their mortgage payment. It could | | | | beneficial for homebuyers. Mainly this is because |
| because of the death of the main wage earner in | | | | when the insurance company assumes risk, the |
| the family, or an injury or disability in the family | | | | homeowner will be more likely to qualify for a loan |
| that will cause them to default on the mortgage | | | | for the mortgage. This means that you can |
| payment. Homeowner mortgage insurance is a | | | | become a homeowner sooner, and have more |
| guarantee that will ensure the lender of the | | | | buying power for purchasing a home. In many |
| mortgage against the potential risks that the | | | | cases, if you go with a lender who is knows you |
| borrower may default on the mortgage. | | | | have mortgage insurance, you will be able to pay |
| Basically, when the lender has mortgage insurance, | | | | a smaller down payment on your first home. |
| they are sharing their risk with the insurance | | | | And, if you become a repeat buyer, then you will |
| company in case the borrower is unable to pay | | | | even have to put less money down, and also you |
| back the money that they are loaned. Many | | | | will enjoy different tax advantages because of |
| people confuse homeowner mortgage insurance | | | | the amount of deductible interest you can file on |
| with homeowner mortgage life insurance. | | | | your taxes. |
| Homeowner mortgage life insurance is meant for | | | | In very real terms, homeowner mortgage |
| the protection of the borrower. In this case, let's | | | | insurance can save you 10% on your down |
| say that the main wage earner in the family | | | | payment. If the lender does not have mortgage |
| meets with an untimely death. What happens is | | | | insurance, they will generally require you to make |
| the rest of the family is stuck with making the | | | | a 20% down payment on a home. However, |
| mortgage payment, and most often will not be | | | | when a lender is ensured, the down payment can |
| able to meet it. In order to avoid this from | | | | be as little as 5%, or around 10% even. |
| happening, mortgage life insurance is purchased. | | | | Unfortunately, you will probably have to pay more |
| Here, the insurance policy will cover the amount | | | | for the mortgage insurance through premiums |
| of the mortgage in case the main wage earner | | | | and annuals. |
| passes on. | | | | |