YOU ASK:

Can I pay in advance for mortgage insurance?

WE ANSWER:

Of course you can! Who would say no to more money and to advanced payment? With an upfront payment for your mortgage insurance, you don't have to worry about it for the rest of the mortgage. It will also come out cheaper as opposed to paying for the premiums on a monthly basis.

Having said that, however, why should you? If you can afford to pay something substantial, you can put your money where it can yield to greater savings and value.

Why don't you look into putting that money on the principal so that you can reduce your debt? This way, since the principal is smaller, your mortgage insurance premiums will also be smaller.

And, if you are able to put up 20% in down payments, you can do away with mortgage insurance altogether.

If you are also able to speed up your amortization payments so that you can more quickly reach the required percentage of equity, you can request the mortgage company to cancel your insurance payments.

Before you sign a mortgage contract, though, you should check to see how mortgage insurance will be treated. In some mortgage contracts, mortgage insurance is required throughout the entire life of the mortgage. This means that you will be paying for something that you are not required to have.

So before you agree on paying in advance for your mortgage insurance, it's best that you explore other options so that you put your money where it can work best for you.

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