YOU ASK:

What is a fair rate for mortgage insurance?

WE ANSWER:

Depending on the insurance company and the type of benefits provided, a fair rate for mortgage insurance will range from 3% to 7% of your monthly mortgage payment.

Premiums will vary depending on various factors:

  • There are premium scales depending on the amount of down payment you have already paid, as well as the length of the mortgage (total number of months).
  • There are also mortgage insurance companies that take into consideration your health status and habits.
  • There are others who simply base their premiums on the details of the loan and do not look at health habits.
  • The premiums also depend on whether you have a fixed-rate mortgage or a varying rate mortgage, as well as the interest rate.

The premiums remain fixed for the length of the coverage.

Mortgage insurance is usually sold by mortgage companies. But, you should shop around first before getting the coverage offered by the mortgage company. That way, you can see whether you are getting the best deal in terms of mortgage insurance.

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