Mortgage insurance in the Savings Bank

Mortgage insurance in the Savings Bank – Wanting to buy an apartment in a mortgage loan, borrowers should insure buy property and need to insure your life and health, and sometimes the title of the property owner . Such insurance is a prerequisite for obtaining a mortgage , because it is made in a very long time , which may be even 30 years . Thus, banks reduce the risks of their losses.

Mortgage insurance is necessary because of the Savings Bank requirements and is ten percent of the loan amount , which is added to the entire amount , but any borrower can insure the property for that amount. Payments account for about 0.2 or 0.5 percent of the total loan amount. Also payments depend on the category of property , its quality and condition .

Both the bank and the borrower profitable life insurance, because when any accident to pay the balance of the loan the borrower will not be a family , and the insurance company . Some borrowers are already insured persons who are insured employer , but it must be clarified whether the bank is cooperating in which a mortgage is taken , with a particular insurance company.

In the presence of serious illness , the borrower must notify the insurance company , since the unexpected death from illness , some insurance refuse to pay insurance. Payments increase with the age of the borrower and should be made once a year at a rate of about 1.4 percent of the total loan amount. Insurance amount is recalculated each year in conjunction with a reduction in debt , which consequently leads to lower insurance premiums .

Property title insurance is not mandatory , but sometimes banks need this type of insurance . Mortgage insurance in the Savings Bank requires title insurance only for the first three years.