23
Apr

How To Protect Your Home With Homeowners Insurance

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When you’re thinking about purchasing an insurance package for your home, it’s vital that you receive every type of coverage you need. Depending on where you live and many other factors, you will need to tweak your coverage. Pay attention to these tips and learn how to get the best coverage possible.

Lower your annual home insurance premiums by raising your deductible. The higher the deductible, the less you pay. Even though you will be stuck with footing the bill for smaller problems you may encounter, it is worth it in the long run. Insurance companies tend to raise a homeowner’s premium after any claim they make, no matter how small.

When you are looking around for insurance, make sure to specify any security features that are installed in your house. A powerful security system that privately offloads security reports can knock an agreeable 5 off of your monthly premiums.

In order to get the best rates on homeowner’s insurance, you can save as much as 25 percent by installing smoke detectors and security systems. These are low cost improvements that quickly pay for themselves. Not only are you saving money, you are also keeping your family safe!

Before a flood strikes, you need to know what to do to be sure that your home is insured against floods. The only way to insure against the risk of floods in the US is via the National Flood Insurance Program (NFID), administered by FEMA. Insurance companies work with FEMA to sell coverage to homeowners. Therefore, always have a plan in place to cover flood protection, and know whom to contact at your insurance company in order to arrange for it.

Make sure to get homeowner’s insurance when you purchase a house. People sometimes forget about insurance because they are too busy dealing with other matters. If something disastrous happens to your home, such a fire, hurricane, or flood, your homeowner’s insurance will help pay all or some of the repair costs.

Be aware, rates may change when you make large additions to your home. Renovations can help with the value of your home. This website is a great place to find ways to improve your home and increase its value. Putting that dream patio in your back yard or that extra bedroom on the second floor may cause your rates to change, so be sure to check.

Insurance for your home isn’t a one-size-fits-all package. The type of coverage you receive will depend on many factors. Make sure that you’re always learning about insurance, and do not forget to use the tips you just read here to save money on your premiums without having to waive any coverage.

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25
May

Who Can Legally Lend Mortgage Money?

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Generally, anyone can lend mortgage money to anyone else. However, most states require people and businesses who lend money as a business to register and get a license.

Though most people get a mortgage from a bank or credit union, there are instances where they borrow money from someone else.

Take, for example, a situation where the buyer doesn’t have money for a down payment and has a credit score that’s too low to get a mortgage. In that case, the owner of the home may agree to finance the buyer for a certain period Read more »

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21
May

Restrictions Lenders May Require On Mortgages

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Mortgages are contracts, which allows either party to impose limitations and restrictions on the other, depending how the contract is written. Since most homebuyers don’t tend to negotiate mortgage terms very often, being far happier to just be approved, the terms are often imposed by lenders. Common restrictions can include:

  • Home insurance – Most lenders want to protect the home from damage since it is used as collateral for the mortgage.
  • Credit insurance – If a home is purchased with Read more »
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19
May

Two Ways in Which Mortgages Can Be Redeemed

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If you fall behind on your mortgage payments by at least three months, you are in default, and your mortgage lender will likely start the foreclosure process. Once you reach this point, depending on the state in which you live, you may be able to redeem your mortgage.

A mortgage redemption involves paying the amounts you owe. This includes your principal and interest amounts, as well as any late payment penalties that are due. In essence, you have to come up with the entire amount Read more »

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15
May

What Happens When a Mortgage Is Sold

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The selling of mortgages is commonplace in the real estate lending industry, but for many homeowners it still feels like a bit of a betrayal after a loan is closed with a particular lender. For lenders, a mortgage is a contract, and contracts are allowed to be sold off or assigned to a third party if there is no restriction in the contract language from doing so. Most homebuyers just accept the mortgage contract put in front of them, so a restriction on assignment almost never Read more »

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13
May

How Balloon Loans Can Work for Consumers

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Balloon loans are a wonderful option when you need lower payments at the beginning of your mortgage term. Monthly payments include mostly interest for the term of the loan, which is usually less than seven years. There are several advantages of balloon mortgage loans.

Borrowers who only plan to live in their home for a few years can benefit from balloon mortgages. Graduate students and professionals who relocate frequently are often good candidates. Because you do not have to make a full mortgage payment, you can invest the money Read more »

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