Information about home mortgage loans you should know

According to the understanding of youth, the regulation must buy mortgage life insurance with collateral not NH would also apply. An employee of credit from ACB said depending on the type of collateral that state bank has required the borrower to buy insurance or not.

For example, if the collateral is business establishments, factories, the accommodation for rent ... then NH request customers must reverse mortgage and purchase insurance fire. Similarly, the collateral is the NH vehicles also require customers to purchase insurance.

If collateral is apartment, townhouse or too small for loan collateral values often NH does not require purchase of insurance, except mortgage refinancing in the case of the state bank staff appraisal found too risky. Similarly, Sacombank also only requires customers to purchase insurance with some collateral has high risk and credit level message in NH stated terms.

Meanwhile, some other terms is considered as NH is required. Customer amount to spend to buy insurance are also different. There where only about 0.2% of the asset value guarantee, respectively a few million if small home mortgage loans, but also where up to several dozen million with loans from 700 million to 1 billion.

Deputy Director a NH shares said the asked customers to buy insurance because this loan contracts lasting many years, even up to 20 years, in the course of the loan if the uncertainties such as fire, earthquake ... affect the value of mortgage assets, the insurance company will replace the borrower continues to pay debt for NH. Only when the borrower has to pay off the amount owed including capital and interest for the new insurance beneficiaries are moved from NH to the borrower.

Represents a NH that should weigh in with this request by apartment buyers are often not high income, again incur an account charges, adding to the burden. "Of course if it's considered a provision ARDENTLY required the prior records must clearly inform customers, to avoid advice not NH staff to either wait reverse mortgage interest rates until the preparation of the new notice, disbursement from that cause pressing where the borrower"-this representative said.

According to experts, the borrower should also learn techniques for binding terms of NH when loans to anticipate situations. In addition the borrowers should also pay attention to the condition to assign the contract to the buyer after the refund conditions or if the termination of the mortgage loan contract before maturity.

In fact many customers after the borrower has to wave a few NH surrender flat, but due to the buyer after needs no loans NH but can't ask refund insurance units because mortgage contracts clause is not specified in the contract.

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