1307 Hope Farm Court
Brunswick, MD 21716
Mortgage Loan Length: 22 years
Average Cost of House in Brunswick: $278,900
Monthly Amount Paid Toward Housing/Other Living Fees: $3,200
Down Payment: $26,000 (large percentage of one year of saving)
Interest Rate: 3%
Monthly Mortgage Payment (included in the $3,200): $1,792.25
For High Fair Isaac Corp. credit scores between 760 and 850, lower interest rates and flexible loan plans are offered.
Under 620, significantly higher rates are implemented.
The minimum to qualify for a mortgage is around 500.
For my mortgage, I also have to bring documentation of household expenses like insurance and taxes to the lender. Income, employment, salary, and bonuses are also important.
(Homeowner's, Health, and Life Insurance part)
4. The mortgage company wants assurance that the home will be repaired when damaged, for the loan is an investment it does not want to lose value in.
5. A home should be insured for its replacement cost. The average local building cost applied to the home’s size, style, and quality of construction should be included.
6. Homeowners insurance protects property against fire, leaks, robbery, and falling objects. However, flood and earthquakes are not covered. Flood insurance and earthquake insurance must be purchased separately, especially in an area of high flash flooding like Austin or one that has earthquakes commonly, such as areas of California.
7. Indemnity insurance allows for freedom in choosing doctors and hospitals, yet a portion of each bill, or co-payment, is owed. It only covers illness or accidents, and does not apply to preventive care. Managed care requires smaller deductibles, if any, and co-payments are fixed and low. Preventive care, drugs, and mental health treatment are usually covered, but a limited number of doctors and hospitals are available for use. I would be more likely to by indemnity insurance because I do not want to be limited in my freedom to choose my own healthcare.
8. Yes, my employer would provide health insurance for me and my family.
9. Whole-life policies provide a policy that pays a fixed amount upon death and a second part that builds value of investments made by the company. Term insurance has no investment component, and it only lasts for a set period of time. I would purchase term insurance because of its flexibility and the low premiums for younger people.
10. Disability insurance helps individuals that are disabled for a long time. It protects their income when disability prevents them from being able to work.
11. The risks include the death of a parent of a dependent child. Without life insurance, the child would lose its source of food and shelter. Without health insurance, the child would not have a means of paying for health bills. Under the circumstance of a house fire, without insurance, all that is lost would not be compensated for. Investing in insurance prevents these extreme consequences.