Insurance

In the mortgage industry Homeowners Insurance is often referred to as Hazard Insurance. Hazard Insurance is included as a determining factor in qualifying you for your home loan payment. Hazard Insurance is for your protection. You should expect to pay a minimum of one year of insurance at the time of closing your home purchase loan. Hazard Insurance may be paid with your home payment each month and placed in an escrow account.

Some loans like FHA and VA loans will always require you to pay homeowners insurance to an escrow account with each mortgage payment and some loans do not allow and escrow account at all. Homeowners insurance is different than other types of insurance like Private Mortgage Insurance, flood insurance, or insurance that will pay off your home upon death or loss of a spouse.

To understand more about your options for hazard insurance requirements call TexasLending.com today, apply online, or send an email question to info@texaslending.com. For your assistance click on the links on the left for more information about hazard insurance.