Is homeowners insurance included in a mortgage?
While homeowners insurance isnât directly included in your mortgage loan, most lenders require proof of insurance to finalize a mortgage. Rather than handling these payments separately, many homeowners prefer to roll their insurance premium into their monthly mortgage payment. This method is both convenient and ensures timely coverage, protecting both you and your lenderâs investment in the property.
Many lenders, like Better Mortgage, make it easier by setting up a mortgage escrow account. This means you make one monthly payment that covers both your loan and insurance, and Better Mortgage handles paying the insurance premiums for you.
How a Mortgage Escrow Account Simplifies Payments
An escrow account allows your lender to collect both your insurance and property tax payments along with your mortgage. By combining these costs into one monthly payment, homeowners can simplify their finances and have peace of mind knowing that insurance and taxes are covered on time.
If youâre unsure of your options, consider discussing your preferences with a Better Cover insurance expert. They can help you decide on the best approach for your specific needs.
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