There are several mortgage insurance mistakes that cannot be avoided even with proper research. That is why you need to contact mortgage brokers because they can be able to tell you about the ins and outs of mortgage loans.

  1. Forgetting the premium

This is one of the mortgage insurance mistakes that lenders forget. Premium is one thing that you need to have in order to qualify for a LMI. The premium is that amount that is paid upfront but in the mortgages it can be rolled into the mortgage. Having an extra cash is very important and more especially when you want to get a deposit.

  1. You need to know what you are purchasing

There are some of us who confuse the mortgage protection insurance with the LMI and that is why it is important for you to know what you need or what you want to purchase. This is important because it enables you to protect your income. There are also other types of insurance that one can use to pay off mortgage after death has occurred or in the event of a death.

  1. Your LMI cannot change even when you have refinanced

The LMI has one option in particular but there are several exceptions to this. This means that if you want to switch lenders you will not be able to take it with you. You are also eligible for a particular refund but this depends on the type of insurer that you have chosen. Know the time limits available before you decide on how you are going to refinance it.

  1. Know whether the premium is refundable or not

It is important for you to know the kind of mortgage loan that you are taking. It is also advisable for you to know whether the whole premium or portion is returnable or not. The kind of insurer or lender that you have is the one to determine whether it is returnable or not. Sometimes your property can be reevaluated as a measure to secure your loan but this happens when there is change in market value.

  1. You need to know your options

Getting the LMI is easy but the problem with most people is to know the options that are available. When you know these options it is easy for you to consider them in an easy way. Getting a security guarantor is very important and more especially the first time home buyers because they are the ones that tend to overlook this.

  1. Getting unnecessary LMI

You need to be very careful to avoid getting unnecessary LMI. The down payment is what will assist you to purchase the LMI that you want. To qualify for this your loan-to-value ratio should be eighty percent to more. Mortgage brokers Melbourne are among the best mortgage brokers who can assist you to avoid unnecessary LMI.

  1. Thinking that you are protected by the LMI

This is another mistake that we make despite the fact that the aim of an insurance is to protect you. The insurance is supposed to protect you in various unforeseen circumstances such as harms to property, life or health. For more information visit www.mortgagebroker247.com.au