What is Private Mortgage Insurance ?
I think that most of us living on this planet should be grateful and obliged to that guy who introduced insurance in the commercial market. And not most of all but all of us, even those stupid babies and event those animals that seem to take the benefits of it. These are the most turbulent times on earth, and that to because of recession, inflation and rising oil prices.
And I don’t even think this would come down as the crude is almost on the verge of getting extinct like that of those dinosaurs and other ancient animals that got extinct too.
Nowadays there are many terrorist attacks and bombings that are taking place not only in the U.S. but all over world. This too seems to contribute to the existing difficulties that we are already undergoing.
But the main cause of our worry is the inflation. Touch wood! But there could be times when we would lose our job due to these turbulent event and jobs cuts that are taking place all over. Therefore what we would do if we lose our jobs and lose our house too, that we have brought by working so hard and accumulating the wealth all our life.
Therefore the private Mortgage Insurance would be the best alternative; this is because it would relieve us from the risks and the dangers of losing our homes, by not being able to pay off our installments on time.
The Private Mortgage insurance is an insurance that protects us indirectly from the lender, now this can be the bank or any financial institution. It also protects the lender in the case of losses that he may have to undergo because we are not able to pay off the loan amount.
So this is how it works, you have to pay a regular insurance premium to the mortgage insurance company. Now this premium can be every month or every quarterly or biannually and this would all depend upon you.
If you feel that you are in a position to pay off more amount then you can surely go for the monthly scheme and if you think that you can pay off the premium on the annum basis, then you can go for the per annum scheme.
This is more preferred by those people who have opted for high mortgage value, since there is more risk associated with it the mortgage and the lender too would feel in secured about his money.