Mortgage Insurance
Mortgage insurance is generally required when the down payment on a home is less than 20%, and it is designed to protect the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and this can mean a higher monthly mortgage insurance premium (sometimes called MIP, MI, or PMI). Depending on the specifics of your information, there are ways in which mortgage insurance can sometimes be avoided at the time of purchase, or dropped altogether at some point in the future. Also, depending on the family income, MI could be tax deductible. See www.irs.gov or http://www.irs.gov/pub/irs-pdf/p530.pdf

Title Insurance
Title insurance is a policy provided by the title company that guarantees the accuracy of the title work done on your home at the time of purchase. Title Insurance is required when obtaining a mortgage to protect against any past unpaid liens, taxes, etc that were missed during the title search.

Home Owner Insurance
Home Owner Insurance is required for a minimum of the loan balance to protect the property against fire or other destructive possibilities that could occur. It is highly recommended that “replacement” cost insurance is chosen to make certain that there is enough coverage to cover the rebuilding on the property in the event of total destruction. There are multiple types of home owner insurance. We can assist you with understanding these and/or refer you to an insurance professional if needed.

Mortgage Life insurance/Mortgage Disability Insurance
These types of insurances are purchased separately (outside the mortgage) to protect the buyer in the event of death (or disability depending on the insurance) as far as the mortgage balance is concerned. We have companies that we have worked with in the event you would like for us to refer you to a professional who specializes in these types of insurance.