Mortgage insurance pays the lender a portion of the principal if you stop making mortgage payments. However, you're still on the hook for the loan, and you could lose the home in foreclosure if you fall too far behind. This coverage differs from mortgage life insurance, which pays off the...
Private mortgage insurance(PMI) is insurance that lenders require from homebuyers who put down less than 20% of the home's purchase price. PMI protects the lender in case the borrower defaults on the loan. If yourdown paymentis less than 20%, you will likely have to pay PMI until you’v...
However, refinancing might not always make sense for everyone so before you decide to refinance your mortgage, here’s everything you should consider.When to refinance your mortgageThere are many different reasons to refinance your mortgage. Some homeowners might do so to lower their monthly ...
1. You have had your current mortgage for a long time If you’ve been paying your original mortgage for over 10 years, refinancing may not be worth it, especially if you restart a 30-year loan term. Extending your loan means paying interest for additional years, which can increase the ov...
If you stop paying your premiums but do not cancel your policy, your carrier will eventually cancel your policy for nonpayment. However, there may be charges for insurance coverage up until that point, along with possible late fees. Failing to properly notify your insurer that you want to ...
Bankruptcy.Insurance companies do go out of business, and when this happens, they will stop issuing new policies and possibly cancel existing ones. If your homeowners insurance policy is being canceled, the insurer generally needs to send you a notice explaining the reasons and to do so a certa...
You co-own a business or a debt (such as a mortgage). Do I need life insurance if I’m single? If there’s no one else depending on you financially, you probably don’t need life insurance. But say you’re helping to support a sibling with disabilities or you co-own a business ...
If you leave your current job for any reason, consider taking your 401(k) with you, and take good care of it as you do so. With some solid due diligence and good planning, you can set up your 401(k) plan at your new job. Millions of Americans do the same thing every...
Do you put in the necessary time and effort to turn a profit? Have you made a profit in this activity in the past, or can you expect to make one in the future? Do you have the necessary knowledge to succeed in this field? Do you depend on income from this activity? A...
Think of what you love to do, and use your free time wisely to thrive in this stage of life.