In 1998, new laws became available under the Homeowner
Protection Act. This Act allows for all homeowners to
have PMI (Private Mortgage Insurance) plans. These laws
failed to also cover the Veteran's loans. Instead, FHA
(Federal Housing Administration) covers these loans.
If you recently took out a mortgage that allowed
you to pay 20% down on the loan, most mortgage lenders
expect you to take out PMI coverage. The PMI plans are
the insurance plans that gives the lender security in
the event you fail to repay the mortgage.
you buy a home, you must take out PMI, which at least
minimally cover the loan on your home. Your mortgage
lender may offer you a plan, but you may also have the option
to find your own home owners insurance.
If you are searching for home owners insurance, you
may want to get quotes online. The quote system
allows you to compare costs on premiums, deductibles,
interest rates, and annual rates allowing you to get
the PMI plan you feel best suits your needs.
talk to your lender about insurance. Your lender
will incorporate the insurance payments into your
monthly installment. Again, you may have options, so
if you are interested in obtaining your own, ask your
lender if you have the option to look for your own
When you begin searching for insurance, look for policies
that will cover natural disasters, vandalism, thefts,
and fires. Rather than finding loans to give your lender security
only, look for coverage that will protect your interests