Mortgage Insurance

To feel secure dealing with its clients, Platinum Lending LTD takes the problem of mortgage insurance very seriously. Mortgage insurance in general offers financial protection for the lender in case the borrower for some reasons fails to pay the mortgage. But since there can be various reasons for such a default, several types of mortgage insurance (obligatory or optional) can be differentiated:

Mortgage default insurance: this insurance is required when more than 75 percent of the value of the property is being borrowed. In this case, the debtor pays only 25 percent of the whole price, so, the creditor demands the mortgage to be default insured so that the insurers pay him back if the borrower fails to pay. Otherwise, the approval of the mortgage will not get confirmed with the insurer. Usually, the borrower pays to the insurer an appraisal fee to get the mortgage processed.

Mortgage life insurance: this type of insurance is optional. It will cover the mortgage for a lender to a prescribed maximum, if a borrower dies or somehow takes out his mortgage before it is paid off.

Mortgage critical illness insurance: also optional and is a supplement to the mortgage life insurance. It guarantees paying off the mortgage if the borrower is diagnosed with a severe disease.

Mortgage payment insurance: this insurance refers to an optional type and serves for the cased when the income of the debtor is suddenly reduced or he gets fired.

Mortgage disability insurance: this insurance protects the debtor if he cannot continue his usual employment (because of an accident or illness) and therefore is unable to make mortgage payments.

Fire insurance is obligatory and is a condition of getting a mortgage. But it is paid separately from the types mentioned above.