# Mortgage Calculator

## \$1,115.57 / Month

### Mortgages

A mortgage is a loan secured by a property usually a real estate property. A real estate mortgage usually includes the following key components:

• Loan Amount the amount borrowed from a lender or bank. The maximum loan amount one can borrow normally correlates with household income or affordability. To estimate an affordable amount, please use our House Affordability Calculator.
• Down Payment the upfront payment of the purchase, usually in a percentage of the total price. In the US, if the down payment is less than 20% of the total property price, typically, private mortgage insurance (PMI) is required to be purchased until the principal arrives at less than 80% or 78% of the total property price. The PMI rate normally ranges from 0.3%-1.5% (generally around 1%) of the total loan amount, depending on various factors. A general rule-of-thumb is that the higher the down payment, the more favorable the interest rate.
• Loan Term the agreed upon length of time the loan shall be repaid in full. The most popular lengths are 30 years and 15 years. Normally, the shorter the loan term, the lower the interest rate.
• Interest Rate the rate of interest charged by a mortgage lender. It can be “fixed” (otherwise known as a fixed-rate mortgage, or FRM), or “adjustable” (otherwise known as an adjustable rate mortgage, or ARM). The calculator above is only usable for fixed rates. For ARMs, interest rates are generally fixed for a period of time, after which they will be periodically “adjusted” based on market indices. ARMs transfer part of the risk to borrowers. Therefore, the initial interest rates are normally 0.5% to 2% lower than FRM with the same loan term. Mortgage interest rates are normally expressed in Annual Percentage Rate (APR), which is sometimes called nominal APR or effective APR. It is the interest rate expressed as a periodic rate multiplied by the number of compounding periods in a year. For example, if a mortgage rate is 6% APR, it means the borrower will have to pay 6% divided by twelve, which comes out to 0.5% in interest every month.

The most common way to repay a mortgage loan is to make monthly, fixed payments to the lender. The payment contains both the principal and the interest. For a typical 30-year loan, the majority of the payments in the first few years cover the interest.

### Costs Associated with Mortgages and Home Ownership

Commonly, monthly mortgage payments will consist of the bulk of the financial costs associated with owning a house, but there are other important costs to keep in mind. In some cases, these costs combined can be more than the mortgage payments. Be sure to keep these costs in mind when planning to purchase a home.

Because the recurring costs perpetuate throughout the lives of mortgages (exception being PMI), they are a significant financial factor. Property Taxes, Home Insurance, HOA Fee, and Other Costs increase with time as a byproduct of moderate inflation. There are optional inputs within the calculator for annual percentage increases. Using these wisely can result in more accurate calculations.

• Property Taxes a tax that property owners pay to governing authorities. In the U.S., property tax is usually managed by municipal or county government. The annual real estate tax in the U.S. varies by location, normally ranging from 1% to 4% of the property value. In some extreme cases, the tax rate can be 10% or higher.
• Home Insurance an insurance policy that protects the owner from accidents that may happen to the private residence or other real estate properties. Home insurance can also contain personal liability coverage, which protects against lawsuits involving injuries that occur on and off the property. The cost of home insurance varies according to factors such as location, condition of property, and coverage amount. Typically, the annual cost can range from 0.1% to 5% of the property value.
• Private Mortgage Insurance (PMI) protects the mortgage lender if the borrower is unable to repay. In the U.S. specifically, if the down payment is less than 20% of the property value, the lender will normally require the borrower to purchase PMI until the loan-to-value ratio (LTV) reaches 80% or 78%. PMI price varies according to factors such as down payment, size of the loan, and credit of the borrower. The annual cost typically ranges from 0.3% to 1.5% of the loan amount.
• HOA Fee a fee that is imposed on the property owner by an organization that maintains and improves property and environment of the neighborhoods that the specific organization covers. Common real estate that requires HOA fees include condominiums, townhomes, and some single-family communities. Annual HOA fees usually amount to less than one percent of the property value.
• Other Costs includes utilities, home maintenance costs, and anything pertaining to the general upkeep of the property. Many miscellaneous costs can be deceptively high and it is important to consider them in the big picture. It is common to spend 1% or more of the property value on annual maintenance alone.

While these costs aren’t contained within calculations, they are still important to keep in mind.

• Closing Costs the fees paid at the closing of a real estate transaction. It is not a recurring fee yet it can be expensive. In the U.S., even though not all are applicable, the closing cost on a mortgage can include attorney fee, title service cost, recording fee, survey fee, property transfer tax, brokerage commission, mortgage application fee, points, appraisal fee, inspection fee, home warranty, pre-paid home insurance, pro-rata property taxes, pro-rata homeowner association dues, pro-rata interest, and more. Sellers will share some of these costs. It is not unusual for a buyer to pay \$10,000 in total closing costs on a \$300,000 transaction.
• Initial Renovations Some buyers invest money into renovations, features, or updates before moving in. Examples may be changing the flooring, repainting the walls, or even adding a patio.

Besides these, new furniture, new appliances, and moving costs are also common non-recurring costs of a home purchase.

### Early Repayment and Extra Payments

For many situations, mortgage borrowers may want to pay off mortgages earlier rather than later, either in whole or in part, for reasons including but not limited to interest savings, home selling, or refinancing. Most mortgage lenders allow borrowers to pay off up to 20% of the loan balance each year but few may have prepayment penalties for one-time payoffs, mainly to prevent refinancing too soon (which will affect the lender’s profit). One-time payoff due to home selling is normally exempt from a prepayment penalty. The penalty amount typically decreases with time until it phases out within 5 years. Few lenders charge prepayment penalties regardless of home-selling or refinancing, but be sure to review the loan terms carefully anyway just in case.

Some borrowers may want to pay off their mortgage loan earlier to reduce interest. Typically, there are three ways to do so. The methods can be used in combination or individually.

1. Refinance to a loan with a shorter term Normally, interest rates of shorter term mortgage loans are lower. Therefore, borrowers not only repay their loan balances faster, but receive lower and more favorable interest rates on their mortgages. Keep in mind that this imposes higher financial pressure on the borrower due to higher monthly mortgage payments. Also, there may be fees or penalties involved.
2. Make extra payments the majority of the earliest mortgage payments will be for interest instead of principal on typical long-term mortgage loan. Any extra payments will decrease loan balances, therefore decreasing interest and pay off earlier in the long run. Some people form the habit of paying extra every month, while others pay extra whenever they can. There are optional inputs to include many extra payments, and it can be helpful to compare the results of supplementing mortgages with extra payments and without.
3. Make biweekly (once every two weeks) payments of half month’s payment instead Since there are 52 weeks each year, this is the equivalent of making 13 months of mortgage repayments a year instead of 12. Utilizing this method, mortgages can be paid off earlier. Displayed in the calculated results are biweekly payments for comparison purposes.

The Calculator has the tools to help evaluate the options. Please be aware that the rates on mortgages tend to be very low compared with other types of loans. Also, mortgage interest is tax-deductible, and home equity accumulated may be counted against borrowers when applying for need-based college aid. Be sure to consider comprehensively before paying off mortgage loans earlier.

# What Does a Mortgage Payment Consist Of?

More fun and exciting mortgage Q A: “What does a mortgage payment consist of?”

Have you ever been curious what you’re paying each month to live in your shiny new (or possibly dingy old) home or condo?

A mortgage payment, assuming it s not an interest-only loan, generally consists of four key items:

• a principal portion
• an interest portion
• property taxes
• homeowners insurance

### Mortgage Payment = PITI

There’s a handy acronym to sum up the mortgage payment breakdown known as PITI. When you say it, it sounds like pity. And I suppose it is a pity that we have to make mortgage payments every month, often for a staggering 30 years or 360 months, but I digress.

Anyway, mortgage lenders typically want X number of months of PITI for cash reserves if you’re verifying assets when you apply for a mortgage. In short, this tells the underwriter you can actually pay back the loan, at least for a few months

Lenders will also use the PITI payment to determine your monthly housing expense, which is then used to calculate your DTI ratio. So it s pretty important!

The principal portion of your mortgage payment is essentially the amount of debt you are borrowing, which eventually transitions into your ownership in the home, also known as home equity.

The interest portion of your mortgage payment is the cost of borrowing that money for the loan, or the expense the bank or mortgage lender charges for taking on the risk.

The tax portion of the mortgage payment is paid to the local government based on the assessed property value and tax rate for the area.

Finally, the insurance portion of the mortgage payment covers homeowners/hazard insurance, which protects the borrower (and lender) from a number of dangers and provides liability coverage.

For those with a mortgage impound account (typically required for a high LTV loan), taxes and insurance are paid monthly with the mortgage payment.

If you aren t subject to impounds, you must pay taxes and insurance directly to the tax office/insurer, and the mortgage payment each month will consist of only principal and interest.

This can be a relief on a monthly basis, but make sure you stash enough cash to pay for taxes and insurance when they are due. I ve had friends who forgot they were on the hook for a big property tax bill, and didn t save accordingly.

Note: If your loan-to-value exceeds 80 percent on a single loan, you’ll also have to pay mortgage insurance on top of the aforementioned, which is one reason why putting 20% down can be a smart move.

And the mortgage payment on an interest-only loan consists of just interest, taxes, and insurance, meaning you can only build equity in your home if the property value appreciates.

If we re talking about a negative amortization loan, such as the once popular option arm, making the minimum payment wouldn t even cover the interest due each month. Of course, you d still have to pay the required taxes and insurance.

* You may also see the acronym PITIA, which stands for principal, interest, taxes, insurance, and association dues. This may apply if there is an HOA that charges due for your property each month.

### How Are Mortgage Payments Applied?

In the beginning of the loan term, mortgage payments primarily go toward paying off interest because the loan balance is so high.

While this may be viewed as a negative, it does mean mortgage interest tax deductions are bigger and more beneficial early on.

Over the years, as the outstanding balance decreases, more of the monthly mortgage payment will go toward principal each month until you eventually own the home outright. This is how amortization works.

It also explains why some savvy homeowners choose to make biweekly mortgage payments, thereby increasing the amount of principal paid early on and decreasing the amount of interest paid over the life of the loan.

Doing so will also shorten your mortgage term, which is beneficial if you want to own your home sooner, but don t want the commitment of larger payments associated with certain loan programs such as the 15-year fixed.

As a rule of thumb, the longer your loan term, the more you ll pay in interest because the loan is paid off slower. If you re able to accelerate your payoff, you ll pay less interest.

### What Will My Mortgage Payment Be?

• principal
• interest
• real estate taxes
• HOA dues
• mortgage insurance
• flood insurance
• homeowners insurance

If you re trying to figure out what you ll be paying your lender each month, consider all the ingredients of a mortgage payment and your mortgage rate.

As noted, if you ve got an impound account, add up the principal, interest, taxes, and insurance. Those last two bits will be determined by your lender, so ask them to break it down.

The principal and interest portion is something you should be able to calculate on your own. Simply plug your loan amount and interest rate into a mortgage calculator to figure out the monthly payment.

If it s interest-only, plug those two items into an IO calculator. Principal will no longer be part of the equation.

Don t forget the extras. Do you need to pay mortgage insurance premiums each month? For example, there are monthly mortgage insurance premiums on FHA loans that must be paid.

What about monthly HOA dues? If it s a condo, there probably are, though you might pay them separately to the association and not your lender.

Either way, it s good to know what your total housing payment will be so you can budget accordingly.

The payments you see advertised typically only include principal and interest. That makes them look relatively cheap. Once everything else is added, the payment can look a whole lot different.

In summary, no one enjoys making mortgage payments every month, but knowing where that money is actually going should make you a more informed borrower. And it could even save you some money!

# Mortgage protection insurance offers limited benefits

Mortgage protection insurance refers to a type of decreasing term life insurance policy where you pay a non-changing premium for the duration of your mortgage. If you die while the policy is in effect, the insurance pays off your mortgage. The lender can become the beneficiary of the policy if the borrower paying for the policy defaults on the loan.

Mortgage protection insurance cost factors

If the outstanding balance of your mortgage is high, your monthly premium will be high as well, and your premium will remain the same even as the balance decreases. This is because you are more likely to die as time goes on, increasing the likelihood that your life insurance company will have to pay on your policy.

Mortgage protection insurance can be purchased either at the same time you buy a home, or at any time in the future. As with other types of life insurance, your age, smoking status and value of your death benefit (the amount left on your mortgage) are taken into account when a life insurance company reviews your application and sets a price.

Mortgage insurance options

Mortgage protection insurance policies will only pay the balance of your mortgage at the time of your death (or maybe a little more if you paid ahead on your mortgage). If you decide this is appropriate for your situation, remember that a regular decreasing term life policy one not marketed as a “mortgage protection” policy can be used for the same purpose, and may also cost less. However, if you want to give your beneficiaries a choice of how to use the insurance money, consider level term life insurance instead.

Depending on your insurance company, joint mortgage protection insurance may be available that covers both you and your spouse and pays out when either of you die.

If you refinance, see if a new policy will get you a better premium. If you default on your mortgage, check with your life insurance company and see if they will extend your coverage.

Mortgage protection insurance and private mortgage insurance

Though they have similar names, these two types of insurance are not related. Private mortgage insurance (PMI) is typically required by the lender when you purchase a house and make a down payment of less than 20%. “Lenders take a risk when a buyer puts down less than 20%,” says Sam Belden, Vice President at Insurance.com. “Private Mortgage Insurance is a way for lenders to protect themselves if a buyer didn’t put much down and ends up in foreclosure.” In today’s difficult economic environment, few lenders will even grant a loan with less than 20% down, so PMI may not be offered in the future.

Although PMI makes it easier for you to get a loan and can help you get a house without waiting to build up savings, it pays the lender, not you. It does not reduce the amount of money you owe the lender. It is not a substitute for life insurance or mortgage protection insurance, which will pay off all or most of your mortgage in the event of your death.

Not what you were looking for? Have questions or feedback? Please let us know.

Originally posted September 20, 2004.

# CalHFA supports the needs of renters and homebuyers

## Multifamily Developers/Managers

### What’s New at CalHFA

• Program Bulletin #2017-13 – Proposed Federal Tax Reform and the Uncertainty of Mortgage Credit Certificate Program
• Press Release 2017-11-09 – CalHFA Launches New Path to Homeownership for Service Members and Veterans
• Video – Cal-EEM + Grant helps homebuyers with \$24,000 of energy upgrades
• Press Release 2017-10-03 – CalHFA Increases Access to Manufactured Home Loans
• Program Bulletin #2017-12 – Closing Document Revisions for MyHome Assistance Program and Extra Credit Teacher Home Purchase Program (ECTP) when combined with a CalHFA Government Insured/Guaranteed First Mortgage
• Program Bulletin #2017-11 – CalHFA Launches New CalHFA VA Loan Program
• Press Release 2017-09-14 – Michael Carroll is CalHFA s New Director of Multifamily Programs
• Program Bulletin #2017-10 – Updated Sales Price Limits
• Program Bulletin #2017-09 – Updated Income Limits for all CalHFA Conventional and FHA Loan First Mortgage Programs
• Program Bulletin #2017-08 – Updates to Manufactured Housing Guidelines for All CalHFA FHA Loan Programs
• Press Release 2017-07-11 – CalHFA Helps Hundreds with Free Homebuyer Education
• Program Bulletin #2017-07 – Escrow Holdbacks Allowed and Name Change for the Notice of Conditional Approval
• Get to know CalHFA and our programs by viewing our Video Library.
• Enews announcements can be found on our Archived Page.

### Hardship Foreclosure Assistance

• Keep Your Home California programs are designed for homeowners who are struggling to pay their mortgages.

• The Home Affordable Refinance Program (HARP) is available on loans owned by Fannie Mae and Freddie Mac. If these loans were insured by the California Housing Loan Insurance Fund they may be eligible to have existing mortgage insurance transferred to a new refinance loan.

### Other Information

• The California Victims Compensation Board is available to help California victims of the October 1 shooting in Las Vegas. If you’ve lost a family member, been injured or attended the Route 91 Harvest Festival where this terrible tragedy occurred on Sunday night, CalVCB can provide financial assistance. Visit the California Victims Compensation Board website and news release for more information.
• Public Notice: Environmental Assessment For Whittier Downey SE Apartments (300 MB)
• Public Notice: Environmental Assessment For North San Pedro Studios
• Public Notice: 2017 Mortgage Credit Certificate Program
• Veterans Housing and Homelessness Prevention Program (VHHP)
• 2014 California Affordable Housing Cost Study
• Language Access Complaint Form /Formulario de queja de acceso por idioma

# Property Investment Calculator

Whether you’re buying your first rental property or you’ve done it before, you can use this calculator to help you do the sums. Get an indication of what it might cost you and what your return could be now and in the future.

Assumptions for projected returns

• The projected estimated return assumes “estimated capital gain”, “interest rate”, “loan repayments” and “income tax rate” variables remain constant throughout the forecast period.
• The projected estimated return applies inflation as an annual compounding gain on income, expenses and chattels depreciation from year 2 onwards.
• “Estimated capital gain” is calculated as an annual compounding gain on the “Current estimated property value”.
• The calculator calculates based on 365 days a year, and does not take into account leap years.
• The calculator also calculates at 26.07 fortnights a year (365/14) and at 52.14 weeks a year (365/7).
• Interest only loans for the entire term of the loan have to be repaid at the end of the loan term.
• Interest only loans for a partial term will convert to a principal and interest loan for the remainder of the loan term.

This calculator provides indicative estimates (with some rounding used), and should be treated as a guide only. It does not take into account your personal situation ( financial or otherwise) or goals and does not constitute a quotation or offer by Westpac in relation to any product or service. The calculations are intended to be illustrative only, are based on the accuracy of information entered and incorporate a number of assumptions to do this (please see list of “calculation assumptions” above for details). No reliance should be placed on these numbers. We recommend you seek independent legal, financial and /or tax advice.

All applications for finance are subject to Westpac’s current home lending criteria. An establishment fee may apply. Interest rates quoted are subject to change. An additional fee or higher interest rate may apply to loans if application is accepted but does not meet the standard lending criteria.

Tax Disclaimer – The information shown in this calculator is intended as a guide only, and does not constitute tax advice to any person, and you should not rely upon the content of this information. Taxation legislation, its interpretation and the levels and bases of taxation may change. We recommend that you seek independent advice.

Westpac accepts no responsibility for the availability or content of any third party websites to which this page may link. All analysis is based on information current at the time of writing from sources that Westpac believes to be authentic and reliable. Westpac issues no invitation to anyone to rely on this material and expressly excludes any liability for any loss or damage of any kind arising out of the use of or reliance on the information provided in relation to this calculator.

# Mortgage protection insurance can save a house — and more

Last Updated: August 8th, 2016

Taking out a mortgage can be a scary prospect. Now imagine if one of the household’s breadwinners dies. How will you make the payments?

Mortgage protection insurance covers this potential financial disaster. You can purchase a policy when you first buy your home. Often you must buy it within a certain time period after closing escrow, generally up to 13 or 24 months. However, some companies may allow up to as much as five years.

The idea behind mortgage protection insurance is straightforward: You pay a premium, which remains the same for the duration of the policy. If you die during that time, the insurance pays out your death benefit.

“Mortgage protection insurance is a life insurance program that gives you special benefits because you have a mortgage,” says Andy Albright, president and CEO of National Agents Alliance, the largest mortgage insurance broker in the nation.

The type of death benefit you receive depends on the type of policy you purchase. Mortgage protection insurance has evolved, Albright says. It used to be that your death benefit would be the outstanding balance on your mortgage. But today, most mortgage insurance policies are designed to pay out the full amount of your original mortgage, no matter how much you owe. For example, let’s say your mortgage was \$100,000 at the time you purchased your 30-year policy. If you die 10 years later, your insurer will still cut your beneficiary a check for \$100,000 even if you now owe \$67,000 on the home.

The beneficiary can use the money for anything to pay off the mortgage in one lump sum, make car payments or put the money in the bank.

If you pay off your mortgage early, you keep the coverage until the term of your policy expires. Some insurers will allow you to turn that mortgage insurance into a life insurance policy, Albright says.

## How mortgage insurance is priced

Insurance companies consider things like your age, if you smoke and the principal amount of the mortgage (many insurers do not count smoking cigars or dipping tobacco). Also, you may not need to take a physical exam to buy mortgage protection insurance, depending on the insurer.

“It opens the window to get life insurance without having to jump through all the hoops,” Albright says.

The national average for a mortgage amount is \$120,000, Albright says. Assuming that’s your mortgage, you would pay roughly \$50 a month for a bare minimum policy. If you want to add riders (such as “return of premium” or living benefits), you may pay around \$150 a month. Out of roughly 70 million homeowners in America, only about 2 percent have mortgage insurance, Albright says.

Some insurance companies may require your policy be reissued if you refinance your mortgage, but it’s not the norm, Albright says. That would probably be the case if you bought a policy that pays out only the balance left on your mortgage.

You may also purchase mortgage protection insurance that provides joint coverage for both you and your spouse. This means the death benefit will be paid when either of you dies. The premium for such joint coverage may be lower than what you’d pay for two individual term life insurance policies.

## Alternatives to mortgage protection insurance

Term life or permanent life insurance are alternatives to mortgage insurance. While most mortgage protection insurance policies today are similar to term life policies because the death benefit could be used to pay the mortgage, funeral expenses, education costs or anything else, you can purchase larger amounts of life insurance. With mortgage insurance protection, your death benefit will likely be capped at your initial mortgage amount. (You may be able to purchase more, up to 20 percent of your mortgage amount.)

The advantage to purchasing mortgage protection insurance is that it may be cheaper than life insurance and you may not be required to undergo a medical exam.

## Don’t confuse mortgage insurance with PMI

If you’ve purchased a home with less than 20 percent down, your lender probably required you to purchase “private mortgage insurance,” or PMI.

While mortgage protection insurance will pay off your loan when you die, PMI is intended to cover a portion of your loan if you default and the benefit is paid to your lender, not your family. PMI is designed to reduce the risk faced by lenders. PMI might make it easier for you to get a mortgage, but you need another form of life insurance to guarantee your loan can be paid off should you die.

# Mortgage protection insurance offers limited benefits

Mortgage protection insurance refers to a type of decreasing term life insurance policy where you pay a non-changing premium for the duration of your mortgage. If you die while the policy is in effect, the insurance pays off your mortgage. The lender can become the beneficiary of the policy if the borrower paying for the policy defaults on the loan.

Mortgage protection insurance cost factors

If the outstanding balance of your mortgage is high, your monthly premium will be high as well, and your premium will remain the same even as the balance decreases. This is because you are more likely to die as time goes on, increasing the likelihood that your life insurance company will have to pay on your policy.

Mortgage protection insurance can be purchased either at the same time you buy a home, or at any time in the future. As with other types of life insurance, your age, smoking status and value of your death benefit (the amount left on your mortgage) are taken into account when a life insurance company reviews your application and sets a price.

Mortgage insurance options

Mortgage protection insurance policies will only pay the balance of your mortgage at the time of your death (or maybe a little more if you paid ahead on your mortgage). If you decide this is appropriate for your situation, remember that a regular decreasing term life policy one not marketed as a “mortgage protection” policy can be used for the same purpose, and may also cost less. However, if you want to give your beneficiaries a choice of how to use the insurance money, consider level term life insurance instead.

Depending on your insurance company, joint mortgage protection insurance may be available that covers both you and your spouse and pays out when either of you die.

If you refinance, see if a new policy will get you a better premium. If you default on your mortgage, check with your life insurance company and see if they will extend your coverage.

Mortgage protection insurance and private mortgage insurance

Though they have similar names, these two types of insurance are not related. Private mortgage insurance (PMI) is typically required by the lender when you purchase a house and make a down payment of less than 20%. “Lenders take a risk when a buyer puts down less than 20%,” says Sam Belden, Vice President at Insurance.com. “Private Mortgage Insurance is a way for lenders to protect themselves if a buyer didn’t put much down and ends up in foreclosure.” In today’s difficult economic environment, few lenders will even grant a loan with less than 20% down, so PMI may not be offered in the future.

Although PMI makes it easier for you to get a loan and can help you get a house without waiting to build up savings, it pays the lender, not you. It does not reduce the amount of money you owe the lender. It is not a substitute for life insurance or mortgage protection insurance, which will pay off all or most of your mortgage in the event of your death.

Not what you were looking for? Have questions or feedback? Please let us know.

Originally posted September 20, 2004.

# Homeowners Income Protection Insurance

## What does Homeowners Income Protection Insurance do?

It can provide you with a proven means to help you keep paying your bills and maintain your lifestyle and any financial commitments by providing you with a set monthly benefit in the event that you are unable to work due to Accident, Sickness or Involuntary Unemployment. This can be a way of helping you avoid getting into debt should the unthinkable happen to you.

The monthly benefit payments from the policy are paid directly to you and are capped as a percentage of your salary with an upper limit.

Homeowners Income Protection is designed to help pay your financial commitments in the event of Accident, Sickness and Involuntary Unemployment.

# Mortgage Payment Protection Insurance

• Your mortgage paid if you can’t work
• Unemployment Exclusions waived* when you Switch
• Great value Customer feedback

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## What does Mortgage Payment Protection Insurance do?

It can provide you with a proven means to help you keep paying your mortgage and other associated household bills on the property that is your main residence by providing you with a set monthly benefit in the event that you are unable to work due to Accident, Sickness (Disability) or Involuntary Unemployment. This can be a way of helping you avoid getting into debt should the unthinkable happen to you.

The monthly benefit payments from the policy are paid directly to you and are capped as a percentage of your salary with an upper limit.

Mortgage Payment Protection Insurance (MPPI) is sometimes referred to as (ASU) Accident, Sickness (Disability) and Involuntary Unemployment and is designed to help pay your mortgage in the event of Accident, Sickness (Disability) and Involuntary Unemployment.

We believe our Mortgage Payment Protection Insurance policy offers UK homeowners complete peace of mind protection at the best possible price.

# Loan Payment Protection Insurance

• Unemployment Exclusions waived* when you Switch
• Benefits paid even if you’re being paid Sick Pay/SSP
• Monthly benefits of up to 1500

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## What does Loan Payment Protection Insurance do?

It can provide you with a proven means to help you keep paying your monthly repayments on any personal loans you have by providing you with a set monthly benefit in the event that you are unable to work due to Accident, Sickness (Disability) or Involuntary Unemployment. This can be a way of helping you avoid getting into debt and falling behind with your monthly repayments should the unthinkable happen to you.

The monthly benefit payments from the policy are paid directly to you and are capped as a percentage of your salary with an upper limit.

Loan Payment Protection Insurance is sometimes referred to as (PPI) or (ASU) Accident, Sickness (Disability) and Involuntary Unemployment and is designed to help pay your mortgage in the event of Accident, Sickness (Disability) and Involuntary Unemployment.

PPI has had a bad press over the past few years because many banks and lenders generally mis-sold what was know a s a single premium policy which had to be paid for up front (often for several years at a time) to people who didn t want the cover or know that they had been charged for it! It really has been a case of the policy being hijacked by these unscrupulous lenders rather than it being a bad type of insurance per se.

# Credit Card Payment Protection Insurance

• Benefits paid even if you’re being paid Sick Pay/SSP
• Easy application process
• Maximum 5000 coverage

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## What does Credit Card Payment Protection Insurance do?

Credit Card Payment Protection Insurance (CCPPI) is also referred to as Payment Protection Insurance (PPI), and like PPI, it has been in the news headlines over the past few years, as the extortionate premiums charged by some credit card companies and store cards has been exposed as a complete rip off. With the worst offenders only paying 3% of a customer s outstanding balance in the event of having to claim due to Accident, Sickness (Disability) or Involuntary Unemployment.

Payment Protection Insurance specifically for UK credit cards has always only ever been available from the card providers themselves and that s why Paymentcare s Credit Card Payment Protection policy offers UK card holders a great alternative. Customers simply select an amount between 1000 and 5000 that best reflects the average outstanding balance across their credit card(s), you can cover as many as you like up to the policy limit as long as you do not exceed 50% of your monthly salary.

### So what s Unique about Credit Card Protection?

UK s lowest cost stand alone credit card cover per 100 of outstanding balance at only 0.55. True protection when you need it most unlike every other credit card payment protection insurance you do not pay for the insurance during a claim period.

### How Does it Work?

Choose the level of cover that s closest to your average monthly outstanding credit card balance(s) between 1000 and 5000.

Cover as many of your credit cards as you wish. The minimum cover amount is 1000 and the maximum is 5000 in total.

e.g. Assuming you have an average monthly outstanding balance of 5000 on your credit card(s) we pay 10% = 500 per month during a claim period, for up to a maximum of 10 months.

# Want to switch your existing Policy to us?

It’s FREE & EASY to switch an existing policy to Paymentcare with NO PENALTIES.

### Can I transfer cover from another Mortgage (MPPI) / Loan / Homeowners Income Protection Insurance provider?

Yes it’s easy to transfer cover, provided you are eligible for the policy and can meet a few simple conditions.

Great news. we also waive the initial exclusion period (this is the period of time where you cannot claim for involuntary unemployment) which applies at the start of a policy, provided that you meet these conditions:

• There is no break in cover, between your existing policy and your new policy with us.
• Your existing policy has been in force for at least six months.
• The benefit of your new policy is the same as on your existing policy. You can increase the amount, but the initial exclusion period will apply to the increased amount you request.
• The cover is on a like for like basis (the same level of cover).
• You must be claim free under your existing policy.
• Any pre-existing medical conditions that are excluded under your existing policy will also be excluded under your new policy.
• We request that you send a copy of your existing certificate of insurance. THIS WILL BE REQUIRED IN THE EVENT OF ANY FUTURE CLAIM ON YOUR NEW POLICY.

Do NOT cancel your existing policy until you have received your new policy documents confirming cover with ourselves. Then you should inform your existing insurer.

### Can I transfer cover from another Credit Card Protection Insurance provider?

We are not aware of any other stand alone credit card protection insurance provider! If you meet the eligibility criteria and you deem that the policy meets your demands and needs and you would like to apply for cover, instead of paying over the odds to your credit card company, then of course you may submit an application.

# How to Calculate Mortgage Insurance (PMI)

Private mortgage insurance (PMI) is insurance that protects a lender in the event that a borrower defaults on a conventional home loan. Mortgage insurance is usually required when the down payment on a home is less than 20 percent of the loan amount. Monthly mortgage insurance payments are usually added into the buyer’s monthly payments.

## Steps Edit

### Method One of Two:

Calculating Mortgage Insurance Edit

### Method Two of Two:

Navigating Other Factors Edit

# Calculate Your New House Payment

Homeowners take advantage of historically low rates!

### Refinance

It may be easier than you think to refinance your current mortgage.

### Home Purchase

Comparing loan offers from different lenders can save you time and money.

### Reverse Mortgage

Seniors over 62 may use their home equity to get cash through a reverse mortgage.

### Auto Insurance

You might be able to save big on auto insurance by changing providers. fill out our 3 minute form to find out.

### Life Insurance

Get peace of mind knowing that your family will be provided financial security when they may need it most.

### Personal Loans

Loans of up to \$35,000 are available for various reasons from a range of lenders.

### Auto Loans

Be it refinance or new car purchase, it pays to shop around.

### Solar Energy

Find a solar specialist from our network and start saving money on your energy bills.

## How Does LowerMyBills.com Work?

• 1 You fill out our easy 3 minute form
• 2 We match you to top providers
• 3 They contact you directly with offers

700,000 Homeowners Could Still Benefit From U.S. HARP Refinancing