What is mortgage insurance?

No self-respecting bank in Russia will not give housing loans without insurance. There are reasons: a large amount of credit and long payment. Over the years, with a client of the bank and real estate can happen, anything. In mortgage lending, there are three types of risks: the title, home and life lender. Thus, the mortgage insurance contains a number of ways. Title insurance protects the status of "property owner". The real estate market often fraudsters who sell the same apartment to several persons. In the insurance case the insured will be paid equivalent compensation for the loss of the right of owning property. Insurance amount is equal to 0,2-0,7% of the cost of credit. Home insurance is in case of fires, floods, acts of third parties, explosions, floods, etc. If you bought on credit will be damaged apartment - insurers will be required to compensate for all losses. For it will have to pay 0,3-0,5% of the cost of credit. Life and health insurance is the borrower in order to reduce bank risk. For a long time customer of the bank may die or lose the ability to work. In this case, the bank will be paid the remaining loan funds, and property will pass to the borrower or his heirs. The cost of this type of insurance varies from 0,3 to 1,5%. If you have any further questions on the mortgage, then you can ask one of our experts.