Mortgage insurance involves three types of risk:
Life and health insurance
Insurance Property linings
This applies to the secondary market. In the case of new buildings under construction is insured only the life and health of the borrower. After entering the house in operation and getting the property rights will be added constructive insurance.
Consider the total cost of insurance for example, buying an apartment on the secondary mortgage program VTB24. Customers - a married couple who have the same salary and their income is equivalent to participate in the calculation of the maximum loan amount. The salary of each co-borrower influences in what proportions will be insured life. When parsing an example will be clear what is meant.
This is the real deal: the loan amount is 3 000 000; Apartment panel semnadtsatietazhki 2000. Built without redevelopment; borrowers - a married couple for 35 years each. The interest rate on the mortgage 14%.
We will not go into detail in the calculation of insurance rates and consider the schematic.
The total fare for this transaction came 0.6%:
Life has managed to Rate 0.25%
Tariff constructive 0.25%
The tariff for the project 0.1%
It should be noted that this rate is quite low: not the old house, the young borrowers. On average, the bank insurance rate is at 1%.
Why depend on mortgage insurance rate
As it is written above it is composed of three parts: life, constructive title. If the policyholder is not 35 years old, and 50, the rate of increase. The presence of any serious injuries or illnesses also increase the tariff.
What can increase the cost of insurance linings? The presence of illegitimate redevelopment, the old house, wooden inter-storey ceilings, etc.
The cost of insurance for the project depends on the title documents and legal history of the transition of ownership of this property. If the current document is, for example, fresh inheritance (property of less than three years), the rate will be high.
Calculating the cost of mortgage insurance
Credit sum is multiplied by the approved loan amount and we get the cost of insurance. So make the most of the banks. Some amount is added on to the loan interest for the year. This method of applying VTB24. Here are their payment at the rate of 14%: annual interest rate is added on to the loan 3 000 000 and get the amount of 3.42 million, multiplied by the value of the insurance rate of 20 520 rubles.
In our example, two of the borrower are equally involved income. Each of them will insure your life for 50% of the amount of the loan at the rate of life / health. That is 1 500 000 multiply by 0.25%, and get 3750 the cost of insurance for everyone.
Insurance should be paid once a year for the remainder of the debt.