Humana Health Insurance Article:

Good News For Medical Insurance Companies
By Joseph
Even with the best intentions, many people fail to meet their mortgage payment obligations. The reasons may vary and include unfortunate circumstances like loss of employment, the sudden death of the primary provider in the family, or some personal injury. These are some of the reasons why you should have homeowner's mortgage insurance. This type of insurance is a mean of providing security for the lender to counter the risks that a borrower may end up defaulting on their mortgage payment.

Mortgage insurance is actually a partnership that the lender and your insurance company have in which they share the overall risk. If the borrower cannot pay back the money they have been loaned, then both companies are afforded certain protections. As you begin to examine this type of insurance in more detail is possible to confuse homeowner's mortgage insurance with what is called homeowner mortgage life insurance. Each serves its own separate purposes.

With mortgage life insurance, the protections are not for the lender or insurance company but rather the borrower and his or her family. As with other forms of life insurance, it is used to cover certain expenses in the event of an untimely death of the primary policyholder. Rather than being left with the burden of the paying the mortgage, the borrower's family, they are provided with the financial ability to pay off this loan.

Homeowner's mortgage insurance is also helpful for the homebuyer. The reason for this is because the insurance

company assumes any risk. This makes obtaining a mortgage much easier since lenders will see a distinct advantage in having a homeowner's insurance company involved. The homebuyer may go out and purchase home far easier and faster. You may also be able to benefit from other advantages like paying smaller down payments on the home.

For those who have purchased more than one home, homeowner's mortgage insurance will allow you to provide less money for down payments. You will be able to qualify for certain type of tax benefit since you can deduct the amount of interest rate that you paid to the lender when tax time arrives. You can reap big savings and get a little of your hard-earned cash back.

There are other benefits that must be emphasized about homeowner's mortgage insurance that you should really keep in mind. For instance, you may be able to save as much as 10% off your total down payment amount. If your lender has no mortgage insurance, is likely that you will have to pay the standard 20% down payment for your home. Conversely, if the lender is insured, you can expect to pay only 5% to 10%.

Of course, there is negative aspect of homeowner's mortgage insurance. You will very likely pay more to have mortgage insurance through costly premiums and annuals. You will have to weigh the various pros and cons of mortgage insurance and see if it is something that is right for you. Most people would rather deal with the cost so they can obtain all of the benefits.