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What is Mortgage Insurance? Review of Mortgage insurance vs Life Insurance | Jabar Post Indonesia

What is Mortgage Insurance? Review of Mortgage insurance vs Life Insurance | Jabar Post Indonesia/a> – This time JabarPost.Net will discuss about Mortgage.

The following is What is Mortgage Insurance? Review of Mortgage insurance vs Life Insurance. And for those of you who want to find a similar explanation, you can search in the Mortgage category

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What is Mortgage Insurance? Review of Mortgage insurance vs Life Insurance | Jabar Post Indonesia

A mortgage loan or, simply, mortgage (/ˈmɔːrɡɪdʒ/) is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property (“foreclosure” or “repossession”) to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning “death pledge” and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.[1] A mortgage can also be described as “a borrower giving consideration in the form of a collateral for a benefit (loan)”.

Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property (for example, their own business premises, residential property let to tenants, or an investment portfolio). The lender will typically be a financial institution, such as a bank, credit union or building society, depending on the country concerned, and the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. The lender’s rights over the secured property take priority over the borrower’s other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first.

In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector (that is, through short-term deposits) or through the capital markets through a process called “securitization”, which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.



http://addysaeed.com/treblog/?p=1741 – Direct Link
http://www.TorontonianOnline.com

I recently had the opportunity to sit down with a friend of mine who is a Financial Advisor with Sunlife and talk about the Mortgage insurance. What I found out surprised me and I learnt lots from conducting the interview.

For more links about this information, please click the direct link above to visit my website.

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4 Comments

  1. First, I'm not going to die. B). If I do die, I won't have to pay mortgage anyway. #3. Too many big words. Lastly, I really like the slogans, "If you own it, you control it", and "The controlling party is the bank", and also "If everything is a no, you qualify".

    P.S. Your phone scared me.

  2. P.P.S. Thanks for posting this.

    Oh – and also a question – do you have to purchase insurance at the time of your mortgage contract? Or any time throughout your term? You might have covered this,but I may have missed it due to my inattention to detail.

  3. @HeyAddy Yes, they made us get insurance. I think you don't need mortgage insurance if you put down 20%, right?

    I just took the mortgage insurance that was set up for us. Being a first-time home buyer was very overwhelming and we didn't really know too many options at the time. Still learning…always learning actually.

  4. @s2macdon "I think you don't need mortgage insurance if you put down 20%, right?"
    That would be CMHC coverage, which is unrelated to mortgage insurance. Mortgage insurance pays of the house if you die. CMHC protects lenders against mortgage default.

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