Low Mortgage Rates for Smart Loan Shoppers
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Low Mortgage Rates for Smart Loan Shoppers |
The Hazards of Home Loans: FiresBy Jonathan Haeberjonathan.haeber@californiamortgagerate.com California Mortgage Rate Columnist California has it's own sordid history of infernos. The first epoch was San Francisco's great fire of 1906, which was a direct result of the 7.9 magnitude earthquake that ripped through the city, busting most water mains and crippling the fire department. Since 1906, there have been a number of conflagrations, especially in Southern California's wildlands. Another notable fire occurred on October 20, 1991 in Oakland, California. It killed 25 people, and destroyed 3,469 homes. Even though the perimeter of the fire was only a little over five miles, it resulted in over 1.5 billion dollars of losses. In 2003, the Southern California wildlands experienced the costliest and most significant fire to date. Over 750,000 acres were burned, 3,710 homes destroyed, and 24 people were killed. It prompted federal funding, building codes, and a vast set of fire safety measures. Keep Yourself Out of the FlamesThe above examples are only a small chip out of the national fire danger block. Of course, if you are buying a home in a place susceptible to fire, you should consider the risks of purchasing.Homes on the hinterland of wildlands are in the most precarious position for wildfires. Any areas in Southern California susceptible to Santa Ana winds are at high risk, as are parts of the eastern Bay Area and North of San Francisco. Avoid Burning Away Your Home Loan InvestmentYour mortgage broker will often require you to provide a one-year receipt showing you've purchased hazard insurance. Hazard insurance covers common home hazards such as fire, windstorms, and other natural events; most home loan mortgage brokers won't lend you money without it.If you are not required to possess hazard insurance by your mortgage broker, then you should weigh the risk of fire to your new home with the cost of insurance. It is yet another monthly expense that you might need to factor into your budget, especially if you want to protect your home loan investment. SourcesThe Oakland-Berkeley Hills Fire OverviewCalifornia Fire Siege 2003--The Story Home Buying FAQ About the AuthorJonathan Haeber recently closed escrow on his first home. He currently resides in San Francisco, CA. and works as a full-time copywriter for Discovery Channel Stores.© 2006 CMR. All rights reserved. |