Fire insurance coverage must be placed on your new home and be effective as of the completion date.
Please verify that prior to completion, your fire insurance agent has forwarded to Lawyer either a binding letter or a certified copy of your insurance policy confirming your fire insurance coverage.
The lawyer will require the following information from your fire insurance agent to finalize your purchase:
the name of the Insurance Company
the amount coverage
the effective date of the policy, which should be your completion date
the expiration date of the policy
confirmation that the policy insures the property that you are purchasing
the policy must be subject to the standard mortgage clause
for your protection and the protection of your lender you should obtain full replacement value for the property
consider any specific riders that you wish to be incorporated into your insurance policy, such as protection from loss as a result of wind damage, water damage or sewer backup
Fixed-rate mortgages are stable and offer long-term savings. This is because the interest rate never changes over the life of the loan. The monthly payment to principal and interest remains the same for the life of the loan. Fixed-rates are typically offered for a 10, 15, 20 and 30 year terms. The longer the term the lower the principal and interest payment which allows you to qualify for a larger home, however; more interest will be paid over the life of the loan. If the market interest rates come down, your rates will remain the same and can only be reduced by re-financing your loan.
A shorter term loan, such as a 10 or 15 year loan, will have a higher principal and interest payment. It is higher because you have a shorter period of time to pay the loan back. The shorter loan is divided over a shorter period of time forcing the payment up. You will create equity faster because more of your payment will apply to the loan balance thus paying it off faster.
Mortgage
