An experienced mortgage professional can help you determine which option is best for your needs. The most important aspect of mortgage insurance that consumers must remember is that the coverage is not required for the life of the loan. This equity can come from either an increase in market value or from paying down the loan. No lender will ever remove the coverage for you. You must make the effort to obtain a new appraisal at your expense and request that the coverage be terminated.
Many consumers confuse the mortgage insurance described above with mortgage credit life insurance.
Mortgage credit life insurance programs charge a small premium each month and will pay off your mortgage loan in full if you die. The last type of coverage that a home buyer must purchase is title insurance. Title insurance provides protection in the event that a flaw in the title is detected after the property has been bought. Lenders will require that home buyers obtain coverage for the mortgage amount, but additional coverage for the home buyers' equity is also available and highly recommended. The good news about title insurance is that it is a one-time charge with no annual premium.