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Tips for Choosing a Mortgage Insurance Provider

2 Frugal Dudes June 4, 2020 84

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    Tips for Choosing a Mortgage Insurance Provider
    2 Frugal Dudes

Episode 183: On this episode of the Where Our Money Went series, we’re talking mortgage insurance, Amazon Prime, and streaming services. Tune in for tips on choosing a mortgage insurance provider for your home.

What is Mortgage Insurance?

Mortgage insurance is required in many areas. The purpose is to cover the lender in the event that you default on your mortgage. If you have a USDA or FHA mortgage, you’ll be required to pay mortgage insurance up until a certain portion of your premium is paid off. For private mortgage insurance providers, mortgage insurance is often required if you have a down payment of less than 20% of the total home cost.

A few months ago, Kevin eliminated his mortgage insurance (PMI) because he had built up enough equity by paying down the premium. Kevin discovered that he had an overage and received a refund from the mortgage company. He used the money to make an extra mortgage payment on the principle.

How Mortgage Insurance is Calculated

Your mortgage insurance will depend on a lot of variables. You have the opportunity to shop around and compare companies, but it’s not a direct comparison. There are different accreditation to consider, the depth of the coverage, environmental and geographical considerations, etc.

Take time to read the fine print and highlight any red flags or perceived benefits before making a decision on your provider.

Show Links & Related Episodes


Disclaimer: Kevin and Sean are not professional financial advisors. Do not take any advice they give without first speaking with a professional and performing your own due diligence. This post may include affiliate links.

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