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Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!mhuxt!houxm!vax135!cornell!uw-beaver!uw-june!entropy!dataio!butler!lee
From: lee@butler.UUCP (Kyu Lee)
Newsgroups: net.consumers
Subject: Re: mortgage insurance
Message-ID: <142@butler.UUCP>
Date: Fri, 27-Sep-85 17:12:44 EDT
Article-I.D.: butler.142
Posted: Fri Sep 27 17:12:44 1985
Date-Received: Sun, 29-Sep-85 08:07:24 EDT
References: <252@mot.UUCP>
Organization: Butler - Controls Div., Kirkland WA
Lines: 28

> []
> About once per month I get a friendly letter from my mortgage company
> encouraging me to buy mortgage insurance.  Since it looked like junk
> mail, I tended to throw them away.  However, upon recent examination,
> the idea looks like it has some merit.
> 	Then again, thought I, am I not already paying a form of mortgage
> insurance .. that 1/2 % interest that FHA slaps on for the life of the
> mortgage?  Well, to be frank, I have no idea what that FHA 1/2 point
> does, nor who benefits.
> 	Anyone know?  If I get mortgage insurance, can I tell FHA to
> forget that 1/2 %?
> -- 
> << Generic disclaimer >>
> Fred Christiansen ("Canajun, eh?") @ Motorola Microsystems, Tempe, AZ
> UUCP:  {seismo!terak, trwrb!flkvax, utzoo!mnetor, ihnp4!btlunix}!mot!fred
> ARPA:  oakhill!mot!fred@ut-sally.ARPA             AT&T:  602-438-3472


In-Reply-To: your article <252@mot.UUCP>


FHA insurance is to insure the lender, not you.  As for the mortgage insurance,
It is considerably cheaper to buy a term life insurance for that 
amount rather than the mail order stuff.  If you belong to ACM or IEEE, 
they have probably the lowest rates on life insurance.  Whether their payment
to the claims is any good, I do not know; I have not died yet to find it
out.  Most professional or social organizations or your company have some
time of group rate. Check it out & good luck.


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