Question about a loan/house insurance.

[☃ ೋ]

I own a house I no longer live in, that has no insurance on it. I recently used this home as collateral to obtain another home loan from my credit union, and pay less mortgage per month. Before they could finalize everything, they needed me to put insurance on the other house. I did, now im good to go.

Now my question is, after I purchase another home, can I then take the insurance off my old home? Will anything fukked up happen to the contract/loan?

 

[Prince.Skeletor]

Breh call yo bank & donate to Tulsi Gabbard

 

[PoorAndDangerous]

So you did a cash out mortgage on your current home to buy another home and you're wondering if you can drop homeowners insurance on the house that they used for collateral? I doubt it, but why ask us? Ask your financial institution

 

[Jean Jacket]

What kind of bootleg shyt is this?

Like breh said... ask your lender indirectly.


It's hard to process how you own property but can't think for yourself.

 

[☃ ೋ]

So you did a cash out mortgage on your current home to buy another home and you're wondering if you can drop homeowners insurance on the house that they used for collateral?

Yes.

but why ask us?

 

[PoorAndDangerous]

What kind of bootleg shyt is this?

Like breh said... ask your lender indirectly.


It's hard to process how you own property but can't think for yourself.

As someone who works in the consumer loan / mortgage lending sector you have no fukking idea how dumb people are until you have to work with them to try to complete a loan.

Yes.

Every lender is different, 99% of the time you're going to be required to carry homeowners insurance on a home that they have a lien on.

 

[OfTheCross]

I own a house I no longer live in, that has no insurance on it. I recently used this home as collateral to obtain another home loan from my credit union, and pay less mortgage per month. Before they could finalize everything, they needed me to put insurance on the other house. I did, now im good to go.

Now my question is, after I purchase another home, can I then take the insurance off my old home? Will anything fukked up happen to the contract/loan?

The answer is no. If you owe money on the house the bank requires insurance. If you don't buy it, they will, and you'll still be the one paying for it

 

[88m3]

No.


Even if you could that would be stupid as fukk.

 

[winb83]

I own a house I no longer live in, that has no insurance on it. I recently used this home as collateral to obtain another home loan from my credit union, and pay less mortgage per month. Before they could finalize everything, they needed me to put insurance on the other house. I did, now im good to go.

Now my question is, after I purchase another home, can I then take the insurance off my old home? Will anything fukked up happen to the contract/loan?

It doesn't sound like a good idea to use a uninsured home as collateral for a new loan. What if that home has something happen to it? The bank is going to require you to protect that home if you want to use it as collateral. It's the same reason they require home insurance on a home you take out a mortgage on and live in as a primary residence.