Different kinds of real estate insurance for Norfolk Homebuyers
Someone just emailed me to ask about the differences in real estate insurance.
Let me clarify when buying a home there are many different kinds of insurance.
1. Hazard/Fire Insurance -required to have, protects you for fire and wind, extra coverages can be added as needed or required, flood, earthquake, upgraded coverages,etc…. Paid in your monthly payment on VA, FHA, and most less than 25% down LTV Conv loans.
2. PMI/with MIP- Private Mortgage Insurance– Required on CONV and FHA Loans usually where the buyer puts down less than 20% -its purpose is to help the lender if the buyer defaults on the loan-the premium is charged in to the monthly payment until the home has about 78%-80% equity and then it goes away. MIP-Mortgage insurance premium is the set up fee for the PMI paid with closing cost or financed in to the total loan. You can talk to lenders about split loans 80/20, 80/10/10, to help avoid paying PMI AND MIP
3. Mortgage Protection Insurance MPI- Is optional usually can set this policy up after you have closed on the home. This insurance will pay off balance of mortgage in case of deaf. Check with your mortgage provider to see what company they would recommend.
For help finding an insurance providers in the Hampton Roads Area give me a call,
Dee Dee Jones
Wainwright Real Estate
The Hampton Roads real Estate Lady