Planning to live in Salt Lake City? The majestic sceneries and broad opportunities for jobs, education, and business are some of the common reasons why many move to Utah’s capital. However, your expenses don’t end once you have already secured your mortgage. As a homeowner, it is your responsibility to secure the following types of insurance:
1. Private Mortgage Insurance (PMI)
PMI is designed for lender’s protection. It guarantees the lender loss recovery in case you default on your mortgage payments.
Calculating PMI is different from determining a mortgage rate Salt Lake City. It is a percentage of your total loan, and it can be as much as 1%. This means if you take up a $300,000 mortgage, your PMI per year is $3,000 — that’s a lot of money.
There’s a way of avoiding PMI, and that is to increase your down payment up to 20%. If you can’t, you can negotiate with your lender to stop PMI payments once you’ve paid at least 75% of your equity.
2. Homeowners Insurance
A house is a costly property. While you cannot avoid natural and man-made disasters to cause damages to the structure and its contents, you can at least look forward to compensation by getting a homeowner’s insurance. Many mortgage lenders may also require you to have one before your loan can be approved.
Fortunately, Utah’s average homeowner insurance is one of the lowest in the country. For your peace of mind, get one.
3. Home Warranty Insurance
Although an optional contract, this is a good complement to your homeowner’s insurance. This provides warranty for covered home components, systems, and appliances that can be damaged due to natural wear and tear. This can range from swimming pools to ventilation systems. Usually, you can renew the contract every year.
Protect not only your Salt Lake City home. For a few dollars a month, secure your investments and finances by getting insurance.