Mortgage Insurance Protects Bank Forced Repossess Your House Loss
Mortgage insurance protects banks forced repossess your house, loss.
When you get a mortgage loan, the bank buys protection from your home in case of default or foreclosure. If you stop making payments on the loan and it goes into foreclosure, then the lender can foreclose on your home and take back property as collateral for the loan.
However, that same bank now has to buy mortgage insurance to protect its investment in your home if there is any damage caused by this forced sale. Mortage insurance is not optional under this circumstance! It's required by law and it's one of those fees that most people don't think about when they get a loan -- until their house gets repossessed due to delinquent payments.
Here are some interesting facts about mortgage insurance:
Mortgage insurance protects the financial institution that lent you money for the mortgage. It allows your lender to recover more than 80% of its original investment in your house against any potential risks, such as foreclosures. Mortgage insurance also protects lenders from any potential lawsuits that could occur if they are responsible for damages to your home while it is in foreclosure.
Mortgage insurance protects the financial institution that lent you money for the mortgage. It allows your lender to recover more than 80% of its original investment in your house against any potential risks, such as foreclosures. Mortgage insurance also protects lenders from any potential lawsuits that could occur if they are responsible for damages to your home while it is in foreclosure. Mortgage insurance can save the lender a lot of money . If the house is in good condition and the borrower has repaid a large portion of the loan, then mortgage insurance may cover all or most of the balance remaining on the loan, offering significant savings to the lender.
Mortgage insurance can save you money . The borrower usually pays one-quarter of 1% of their original loan amount each year for mortgage insurance. For example, if you take out a $200,000 loan at 7% interest with 20 years left on it, then your annual payments will be around $216 per month. Since the bank will pay mortgage insurance annually, then you will only have about $27 per month in monthly payments. That would amount to about 2.6% interest for the life of the loan.
Mortgage insurance can cost up to nearly 30% of the initial loan balance. There is a deductible or cap on how much total loss your home may incur over your loan term (up to $200,000) and a maximum limit on what portion of your original investment amount can be returned to you (about 80%). There is also a special assessment that is levied when you take out a new mortgage after 1992 and before 1997. These "prepayment penalties" are added to your monthly payment when you refinance or make new payments on your loan.
Mortgage insurance is not a tax deduction. There is no tax benefit for paying mortgage insurance. The money that you pay into the program is borrowed from the U.S. Treasury and will be paid back with interest many years in the future (when you sell your home). As a result, there are no capital gains for paying mortgages insured by the mortgage insurance programs, meaning that you cannot deduct mortgage insurance payments as mortgage interest income for tax purposes .
Mortgage insurance is not a tax deduction. There is no tax benefit for paying mortgage insurance. The money that you pay into the program is borrowed from the U.S. Treasury and will be paid back with interest many years in the future (when you sell your home). As a result, there are no capital gains for paying mortgages insured by the mortgage insurance programs, meaning that . Loan modifications made since July 1, 1993, can qualify for mortgage insurance from the U.S. Department of Housing and Urban Development (HUD). HUD can modify your loan to lower your monthly payments and extend your loan period to help lower your interest costs on a home purchase.
If you are currently having trouble making payments on your loan or you don't have the ability to pay a home loan, then talk to your lender about your options so that you can avoid foreclosure. There may be programs that you qualify for that could help lower your monthly payments such as principal reduction, principal forgiveness, forbearance, short sale and deed in lieu of foreclosure.
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SOURCE: http://www.homeownership.org/articles/mortgage-insurance-protects-bank-forced-repossess-your-house.html
As the Environmental Protection Agency (EPA) considers its first major rules in more than two decades, it has already encountered an internal revolt.
The agency's Aug. 2 withdrawal of an Obama administration proposal to limit carbon emissions from existing power plants came after officials at the Interior Department and the Bureau of Land Management (BLM) tried to intervene, according to a person familiar with the matter and documents reviewed by Reuters. The move would have required states to slash greenhouse gas emissions in coming years while lending them more flexibility to alter their plans if that proved impossible.
A sign on the entrance to the EPA headquarters building reads: "Protecting people and the planet", in Washington, August 2, 2011. REUTERS/Kevin Lamarque (UNITED STATES - Tags: ENVIRONMENT)
But Interior Department officials objected when they learned of the plan because they were concerned that it posed an imminent threat to their budget and that of states under a new law cracking down on red tape, according to a memo submitted by Charles Kalkhoff, who was responsible for overseeing climate change at BLM.
The BLM memo said it was concerned "that implementation of this proposed action could have significant legal and financial consequences for us." The U.S. Department of Energy was also concerned.
On Aug. 2, the EPA withdrew the proposal, saying it would revise it in light of public comments, which are being reviewed by the agency. The EPA declined to comment. Interior Department officials did not respond to requests for comment about their involvement in the regulation.
The internal pushback - unusual for a rule that had yet to be formally proposed - illustrates how President Donald Trump's drive to relax Obama-era environmental rules is hitting resistance even within his own administration. For now at least, opponents have managed to forestall final action on a proposal that Trump has said was one of his priorities but which environmentalists and many states were sure to challenge in court and likely block.
The New York Times, which first reported the story on Monday, said the proposal's opponents included U.S. Secretary of Interior Ryan Zinke and that he and EPA Administrator Scott Pruitt have been laying the groundwork for a possible withdrawal of the clean power plan since at least May. Reuters could not confirm that with Interior Department officials following publication of that article. The Interior Department was one of three agencies with staff who reviewed the rule before it was proposed in 2015.
The controversy over what is known as the clean power plan has arisen as Trump seeks to reverse many other Obama-era rules aimed at reducing carbon emissions and combating climate change through greater regulation of emissions from coal-fired power plants.
Conclusion: Trump's executive orders have been a huge disappointment. His attempts to reform the EPA and his attempts to scale down the Clean Power Plan are just two examples of his failures. But it looks like even his own cabinet members are attempting to fight against Trump and his destructive policies. It is frankly a miracle they have not been fired already.
Top Photo | A sign on the entrance to the EPA headquarters building reads: "Protecting people and the planet", in Washington, Aug. 2, 2011. (AP Photo/Charles Dharapak)
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