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Mortgage Refinancing Help: Insurance
“When refinancing a mortgage, as many as 30% of homeowner's cash out part or all of their home's equity. By investing in home improvements or paying off credit cards, this can be a smart. But, if you are borrowing more than 80% of your home's value, you will be hit with private mortgage insurance, costing you hundreds a year.
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Mortgage Refinancing Help
: Regional: North America: United States: Business and Economy: Financial Services
: Insurance (14)
 Be Ready. After your loan is approved, you'll need to sign your loan documents and provide a check for any out-of-pocket closing costs. Make sure the funds are available in your account, and be ready to make room in your schedule to read and sign your loan documents as soon as possible.
 See also:
 National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) »
Voluntary association composed of the life and health insurance guaranty associations of all 50 states, the District of Columbia, and Puerto Rico. When an insolvency involves multiple states, NOLHGA assists its state guaranty association members.
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 National Association of Insurance Commissioners (NAIC) »
Organization of insurance regulators from all states and dependent areas. The NAIC provides a forum for the development of uniform policy when uniformity is appropriate.
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 National Association of Insurance and Financial Advisors (NAIFA) »
Represents licensed life insurance agents and financial advisors through its federation of 900+ state and local associations located throughout the country.
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 Independent Insurance Agents & Brokers of America (IIABA) »
A resource for consumers, media, and insurance professionals. Includes natural disasters tips; guides to auto, business, home, life, and health insurance; and consumer studies.
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 National Conference of Insurance Legislators (NCOIL) »
Organization of legislators from over 30 states whose main area of public policy concern is insurance legislation and regulation.
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 Association of Insurance Compliance Professionals (AICP) »
Dedicated to promoting regulatory competence and awareness for the improvement of regulatory compliance within the insurance industry.
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 Insurance Institute for Highway Safety »
Independent, nonprofit, research and communications organizations funded by auto insurers and dedicated to reducing highway crash deaths, injuries and property losses. Also includes the Highway Loss Data Institute.
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 National Association of Professional Insurance Agents (PIA) »
Voluntary, membership based, trade association representing professional independent insurance agents throughout the nation.
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 National Association of Mutual Insurance Companies (NAMIC) »
National trade association of mutual property and casualty insurance companies. Includes a consumer information links, online message board, live chat, state legislature and insurance department links.
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 Council for Affordable Health Insurance (CAHI) »
A research and advocacy association of insurers active in the individual, small group, medical savings account, and senior markets. Organization news and information for consumers.
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 Society of Financial Service Professionals »
Formerly the American Society of CLU and ChFC, and still associated with The American College. Includes information about the society, membership, educational opportunities, and an online store.
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 National Conference of Insurance Guaranty Funds (NCIGF) »
Nonprofit association designed to provide assistance and support to the property and casualty guaranty funds located in each of the fifty states as well as Puerto Rico and the District of Columbia.
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 Society of Insurance Licensing Administrators (SILA) »
A professional organization for those interested in the licensing of agents, agencies, adjusters, brokers, companies, producers, securities dealers, and third party administrators.
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 Insurance Regulatory Examiners Society (IRES) »
Enhances the efforts of state regulators by ensuring professionalism and integrity among the men and women who serve with state or federal insurance regulatory bodies.
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 You can ask for a copy of your settlement cost papers (the HUD-1 form) one day in advance of your loan closing. This will give you a chance to review the documents and verify the terms.
If your property value reduces and you refinance up to 80% of the reappraised value, your original mortgage amount may be higher than this amount. Thus, the new loan will not be sufficient enough to help you pay down the existing one.
Don't escrow taxes and insurance. Unless you're undisciplined, avoid putting monies in escrow to cover your property taxes and homeowner's insurance. There's usually a fee for this privilege that runs under 1 percent of the loan amount, in states where it's allowed. "Paying the fee will allow you to time your tax and insurance payments to your benefit," says Bank South's Steve Austin. For instance, you may be able to prepay taxes that are due next year and use those payments to reduce your current tax bill. Moreover, you get to hang onto your money longer. That may be an advantage when interest-bearing accounts start paying more.
If you do not plan on staying in the house very long, refinancing may not be in your best interests.
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