How Much Does a Home Equity Guard HEP Contract Cost?
Aug 22, 2010
The contract costs 3% of the property’s value. This amount is paid to Home Equity Guard when the contract is bought. To make the product more affordable, the cost of the contract can be repaid to the bank as part of the mortgage.
Example:
To protect a property worth $200,000 the HEP premium would cost $1,500 (3% X $200,000).
This adds approximately $30 per month in repayment costs on a $200,000 interest and principle mortgage repaid over 30 years at 5% per annum. On average, the HEP contract costs approximately $15 per additional $100,000 of coverage. In other words, the premium would cost about $45 per month on a $300,000 mortgage, $60 per month on a $400,000 mortgage and so on.
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