The process of buying a new home can be full of confusion for new purchasers. The transition from the ease and simplicity of making a monthly rental payment to learning about the effect of various interest rates, whether variable or fixed, as well as down payment terms and conditions and fees and costs for agents and mortgage brokers, can seem intimidating at first. Along with all the unanswered questions in the process of a move, from finding the best rates on reliable Columbus movers, to researching the new school districts, to sending change of address cards to the entire mailing list, learning the ins and outs of mortgage lending is an important part of the learning curve to become a homeowner.

Mortgage Insurance Types

The term “mortgage insurance” can apply to two different cases. Mortgage life insurance is a type of coverage that Columbus homeowners can buy to protect their mortgage payments in the event of death or severe disability. Mortgage guarantee insurance is a type of protection for the lender, so that it will be certain to be paid if the loan goes into default. Borrower paid private mortgage insurance (BPMI) is often required if the loan to value (LTV) rate is high, generally where the buyer puts less than twenty percent down payment. Along with the process of finding the right house, selecting the best Columbus movers to handle the big job of loading and unloading the moving truck into the new house, and getting the change of address to everyone who needs to know it, a move to homeownership involves an education in the modern mortgage. The more you know, the better prepared you are for the change.