Why mortgage lenders require you to purchase insurance Most Americans dream of the day they will purchase their first home, and many prudent individuals begin saving for this goal as soon as they begin their working years in their 20s. This is a great goal to have, and many people will be able to achieve it if they are patient and work hard enough. However, before you make the final decision to purchase a home you need to be aware of all...more
What is private mortgage insurance? If you've been preparing to buy a house, you are probably already aware of the many costs involved including real estate commissions, loan origination fees, and of course, a big down payment. However, depending on your particular loan, you may be required to spend some extra money and obtain private mortgage insurance, which protects the lender in case of your default.Ideally, you should have saved...more
Wealth Building - Better to be Wealthy than Rich!? If you are a millionaire, are you by default wealthy? Ahmm, not necessarily so. A millionaire by definition is someone whose net worth (asset value minus debt) exceeds a millionaire dollars/euros etc. However, if a person did have 1 million in assets but these assets were not generating income then that person by my definition is rich but not wealthy.Why Making Money Won't Make You Rich You can make a lot of money and still be broke. I know many people who have made millions of dollars in the course of their life but are now neither rich nor wealthy. Why is this? Well, not all people are blessed with naturally good money management and investment skills. Some people can be more interested in living a certain lifestyle now rather than planning and building an asset base that will enable them to live the lifestyle they want for the remainder of their lives. It's not how much money you make that matters, but how much money you keep.How Rich is Rich?We often say so-and-so is rich because he or she has a high-income corporate job, buys brand new luxurious cars, dresses in fancy clothes and so on. Although these are...more
How to Avert a Misselling Of Mortgage Payment Insurance? Do not give into sales talks or insurance agents persuasive comments which make you feel that it is a mandatory policy that you should have if you want a mortgage loan. Clearly understand the terms of the policy and find out till what period are you covered for? You must mention till...more
Wealth Building - Other People's Money (OPM): What the Rich and Wealthy Have Known for Years Getting rich isn't all about hard work. In fact hard work has got little to do with getting rich. It's not that I don't advocate hard work, I do. I love working hard but I especially like to see myself and others working smart. I...more
The FHA, or Federal Housing Administration, provides mortgage insurance on loans for purchasing a home. They insure the mortgages for single and multifamily homes, manufactured homes, and hospitals. Since their founding in 1934, they have provided more than 34 million insured property loans. An FHA insured mortgage loan does not require very much cash investment in order to close. In some instances (a higher down payment on the home) there are no closing costs. FHA mortgages are more lenient on a number of factors. They are more flexible with household income and payment rates. In terms of income, the FHA insured loans require that one must possess a steady employment history. The individual must have worked at the same job for at least two years. They must have a consistent income or increased income for a period of two years. The individual's credit must be in good standing.A further qualification for an FHA mortgage loan is that there cannot be more than 2 thirty day late payments reflected on the credit history for a two year period. If there are any bankruptcies, they must be older than 2 years. Any foreclosures on the individual's history must be more than 3 years...more
Wealth does not exactly refer to money. While majority would associate the former to the latter, it does not necessarily equate to one another. In reality, money is a by-product of wealth and because this is the case, you can simply infer that wealth...more
Planning Helps Your Wealth Building One of the most important things you need in life is to learn how to secure your financial well-being. Now that we have seen the need to invest, we should get to it. You don't have to be a genius to do...more
High Ratio Mortgage Insurance In Canada Mortgage Loan Insurance Is Required By Lenders in Canada with less than 20% down payment When you want to buy a house getting a mortgage loan thru a Toronto Mortgage Broker is the way that most people...more
So, you finally got your mortgage approved and the lender says to you, how about some insurance? Since the lender was so wonderful with your loan, you listen carefully and decide right there and then to take a so called mortgage disability insurance...more
Finding Attractive Mortgage Term Insurance Deals Of all the different flavors of insurance available to the common man today, mortgage term life insurance is one of the most important ones, possibly next in importance to only life insurance....more
Mortgage Payment Protection as Unemployment Insurance Unemployment insurance is a term used for mortgage payment protection, loan protection and income protection which is taken out in case some time in the future you find yourself unemployed...more