The housing market, as we know, was and remains a risky sphere of Russian business. System of mortgage insurance helps reduce the risks to a minimum. Now the existence of the policy is a prerequisite for obtaining a loan. But this raises the cost of service is more for the final cost of the mortgage borrower's apartment. The client, contact the bank for a loan to buy an apartment, paid only a relatively small portion of its market value (usually 20 to 30%). The rest of the sum gives the bank, which for several years the borrower must return the amount received with some interest. Guarantees and warranties The Borrower shall again take the money for a long time (generally 10-15 years but may be 20 or even 30 years), and the lender requires guarantees that no dramatic changes in the borrower's life and the fate of the acquired due to the credit shelter not prevent the return of money. For the bank, it is important that when the insured event the loan was repaid by insurance payments. Loss of high-paying job, disability due to accident or illness, death of the borrower - all risk factors. Also, when buying an apartment in the secondary market creates an additional risk of legal purity issue, because even the most meticulous examination does not guarantee that ownership does not argue with someone from the former owners. The bank issuing the mortgage loan, of course, want to ensure the return of their funds and profitability of the operation. That is why banks tend to shift their risk onto the shoulders of insurance companies - one of the conditions of the contract of mortgage lending has become compulsory insurance transaction. The sum insured - the maximum possible payout under the insurance contract. The customer's choice, it is a balance of outstanding loans (value of debt to the bank), or the value of the property. Credit one - the risks are many lenders and insurance companies themselves determine the set of risks, from which the borrower is obliged to insure. As a rule, the bank cooperated with one or several companies that provide a full range of insurance services for the mortgage business. From the rather lengthy list of hypothetical risks are chosen the most appropriate. Typically, mortgage insurance includes three main components. First of all insurance of the property, purchased on credit. Theoretically, the law requires to insure the structural elements only apartments, but most customers prefer to insure the house together with decoration. Healthy be beneficial for life insurance and disability insurance case admits death of the borrower for any reason, temporary or permanent disability resulting from an accident. That is, payment shall be made in case of default of the borrower in one of these reasons is unable to continue payments on the loan. Signing the contract of mortgage insurance program, the potential borrower fills out a medical questionnaire generally. If there are circumstances that increase the risk of the insured event (chronic, dangerous hobbies, job-related risks, etc.), it is noted in the responses. Then the value of payment for insurance is calculated individually. Fear Factor insurance risk property losses as a result of loss of property rights after considering the transactions referred to invalidate the title. In this case, the object of insurance is the flaws in the titles, ie, documented basis of tenure. Title insurance - a requirement of the bank issuing the mortgage loan. In the insurance cover includes the risk that the transaction be void if it made a citizen found incompetent because of mental disorder, by reason of the minority, because of its commission under the influence of fraud, violence, threats, etc. In addition a number of banks offer borrowers insure their civil liability to third parties arising from the operation of the facility of pledge. Costly need sum insured under a contract of a comprehensive mortgage insurance issued by the amount determined by the size (generally, property is insured for the loan amount, increased by 10%) and reduced in accordance with the schedule of repayment. The value of the premium also depends on the period of insurance, age and health of the borrower, the quality of apartments and houses, where it is, the object of legal purity. The whole complex of insurance required to obtain a mortgage, the average cost 1.2-1.5% of the value of real estate. Do not forget that insurance will pay not only for getting a mortgage, but over the whole period of his return. Payments to obtain much more significant - for the insured amount is the balance of outstanding loans owed to the bank. Calculate the approximate size of upcoming insurance payments easy: many insurance companies place on their websites so called calculators. Consider a specific example. The Borrower has chosen an apartment costing $ 100 thousand payment of initial deposit of 30%, he took a bank loan of $ 70 thousand to ten years at 10% per annum. Insured structural elements and the layout of the apartment decoration, as well as the title .. Borrowers should keep in mind that different insurance companies, freight rates are very different, but the bank does not give its customers the right to choose the most advantageous terms.
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