loan/mortgage repayment via sched xactions: feedback request

[Olaf Faaland]

Conrad,

"Insurance" : Hazard insurance, covering things like fire, floods, burgla=
ries,=20
etc.  The property owner is usually the beneficiary (payee), although the=
=20
lender will have a claim on the $ if the loan is not paid off.   Here in =
the=20
US, the lender requires the borrower purchase this.

PMI:  I can't remember what the acronym stands for, but it's insurance th=
at=20
protects the lender (the bank) in the event the borrower (homeowner) defa=
ults=20
on the loan.  The bank is the benificiary. It is required for loans which=
 are=20
a "high" percentage of the purchase price or appraised value of the prope=
rty. =20
Where I live in California/US, it is generally required if the ratio (Loa=
n=20
Amt / Purchase Price) is greater than 80%.  If it is required when you ma=
ke=20
the purchase, you can cancel it only after you meet your bank's criteria.=
 =20
Those criteria either involve paying the loan down to that 80% mark, or y=
our=20
property appreciating enough, where "enough" depends on the bank.  In my=20
case, the $ amount of the PMI payment was determined at the time the loan=
 was=20
made and was fixed, until I met the cancellation criteria.

Your question makes me wonder what other, different forms of insurance or=
=20
taxes there are out there; and whether the template Josh created is reall=
y a=20
US one.  The ones Josh listed certainly fit my loans.

-Olaf

On Thursday 04 July 2002 05:07 pm, Conrad Canterford wrote:
> On Fri, 2002-07-05 at 04:00, Josh Sled wrote:
> > | PMI and Insurance should be separated into two sets of options, eac=
h
> > | with their own page.
> >
> > Noted.
>
> Can I seek clarification of your terminology here so I can follow what
> you are discussing. What, exactly do you mean by PMI, and (assuming tha=
t
> it is what I think it is) what then do you mean by "insurance" as a
> seperate thing?
>
> Conrad.