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The More Profitable Mortgage Insurance

Those who are faced with mortgage, you know that bank for this loan require insurance. This refers to the compulsory insurance, property insurance, life and health of the borrower, as well as, in many cases, and title insurance. And now offered yet another policy - a policy of mortgage insurance. More Profitable Mortgage Insurance

It implies the insurance risks that arise when there comes the need for the implementation of the mortgage borrower's non-compliance with obligations. We explain what it is about. Suppose the borrower is unable to pay its obligations under the loan, and the bank sells the property that served as collateral. 

But sometimes, even after the sale, the borrower still owes the bank has some money. It is this amount and will be covered by insurance, as well as costs incurred by the bank in this case. Thus, such insurance benefits and the borrower and the bank. First, it will protect from falling into the "debt trap" and the second will compensate their losses in any case. This means that mortgage lending is becoming safer for the bank.

Hence - and another benefit to the borrower: a mortgage would cost for a cheaper. In particular, the reduced amount of the first mandatory contribution. In practice, the conclusion of the mortgage with mortgage insurance allows you to set the level of the initial contribution of 10%. In addition, can be reduced and the rate on the loan. In general we can say that for the cost of the insured borrower loan will be substantially less.

Who should think about mortgage insurance? First of all those for whom the mortgage is high risk. This young family, budget, and those who buy their first home and has at its disposal other real estate. Insurance can provide the additional protection, and also offers mortgage lending, not waiting to Skopje significant amount as a down payment.Therefore, despite the fact that this type of insurance, as opposed to property insurance is not required in obtaining a mortgage, how to use it is worth considering.

But you should know that this type of insurance has certain limitations. It can be applied only to the property on which the registered ownership. This category includes housing, purchased on the secondary market, and the new buildings at the stage when the apartment is already incorporated into property. Insured can only housing that is acquired for a living, and not for investment. This need not be the only accommodation with, for example, registration in privatized apartment owned by his parents, a young family can count on the insurance of the apartment, which she takes on the mortgage for you. (article-insurance)

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