By John Aretos, CEO of Police Mortgage
There are several types of insurance to consider when buying a home. The first that we commonly talk about is homeowners insurance.
That can take on different forms. For instance, if you’re buying a condominium unit your homeowners insurance is usually included in your association dues. That covers the common elements of the building. In this situation you may consider an additional insurance policy to cover the contents in your home.
There’s private mortgage insurance as well, also known as PMI. This comes into play when a buyer is putting less than 20% down on a conventional or FHA loan.
Insurance is part of the conversation when we have the pleasure of sitting down with people or speaking with them on the phone during the pre-approval discussion. It’s important to us at Police Mortgage to cover all of the costs associated with insurance considerations when reviewing a police home loan with a first responder.
Of course, we are going to talk to you about the monthly payment in terms of principal and interest. However, that’s only one aspect of your payment. The other components of the payment are the property taxes and the homeowners insurance.
If you’re putting 20% or more down, there is no private mortgage insurance. But you still have to obtain homeowners insurance coverage that, at a minimum, covers the replacement cost of your home. For instance, if you buy a home for $300,000 and the replacement cost of that home is also $300,000 then you must insure your home for at least $300,000. The first responders we work with generally know that they need homeowners’ insurance, but some don’t realize that you have to have the amount that covers the replacement cost.
I’m not here to tell you what to do on the insurance aspect of buying a property. There are insurance experts for that. But I can tell you what is involved, especially given the higher costs of insurance today. Imagine trying to get homeowners insurance down in Florida after all the hurricane activity, for example.
Insurance premiums vary quite a bit due to a number of factors. They depend on the area that you’re buying in, the risk profile, and more. So, we strive to make sure that when we’re speaking with first responders that we’re not just quoting a basic monthly payment. Police Mortgage paints the full picture including what we typically see when it comes to homeowners insurance premiums.
Some of our clients don’t realize that an annual premium has to be paid up front prior to closing. This is because homeowners insurance is in arrears, meaning that you’re paying for your insurance one year in advance. Then the next premium that you pay covers the period of time that you’re currently in the home.
When it comes to law-enforcement home loans, it’s very important to understand the upfront cost. It’s not a cost Police Mortgage charges you. If you’re working with another mortgage company, they may overlook the insurance considerations or just gloss over them. Then when you’re a week or two before closing you may be scrambling to obtain homeowners insurance. You also then realize that your expected monthly payment is going to go up. And as we say at every Chicago Patrolman Credit Union location, we don’t want you to sweat your payment. That’s why we try to give our first responders as accurate a picture of the expected monthly payment as possible.
That goes back to the whole conservative method of how we qualify people. Police Mortgage strives to inform and educate.
Going back to condominium units, your association dues which includes insurance for the property doesn’t cover the contents within the unit. In other words, your furniture, your jewelry, your computers, and all your other possessions actually in the unit are not covered in the case of a fire or another disaster. So, there will be an additional cost to obtain your own insurance policy to cover the contents within the unit. That, along with the amount of the monthly association dues, need to be discussed and quoted.
In closing, when it comes to police home loans, we want to cover P-I-T-I. That is the principal, interest, taxes, and insurance that comprise the monthly payment. We have an obligation as a fiduciary to provide an accurate quote to make sure the loan is qualifiable. So, we take all factors into consideration including the costs for homeowners insurance, PMI, and much more.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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I have my bachelor’s in business administration and have been involved in the banking industry for over 10 years. During this time, I managed two of the Chicago Patrolmen’s Federal Credit Union locations prior to transitioning to Police Mortgage. I have family members who are police officers with the Chicago Police Department. My work has been very rewarding, and I take pride in having assisted countless members and their families with their financial needs and financial wellness. My hobbies include exploring new restaurants in the city and running for marathons that support pediatric cancer foundations and Chicago Police Memorial Foundation’s Run To Remember. I come from a large family primarily from the south side of Chicago and love to share all the diversity and beauty the city has to offer with my two children.
I am honored to grow up in a multi-generational family of Chicago Police Officers. I joined Police Mortgage in the summer of 2020 and love the opportunity to help both first-time buyers and repeat clients alike achieve their dreams of purchasing a home. Having been born and raised in the south suburbs of Chicago, I happily live in the Lakeview neighborhood today. Along with my two younger sisters, I am a graduate of the University of Illinois at Urbana-Champaign and a lifelong Chicago Bears fan. I have a strong passion for food and love exploring the vast array of restaurants throughout our city. Nothing makes me happier than spending a summer afternoon on a golf course with family and friends!
I joined my brother at Police Mortgage as a loan officer in August of 2021 after a 10-year career in sales and marketing. Most recently, I worked as a Senior Account Executive for Ricoh North America, an office electronics company, where my main responsibilities were building new client relationships and maintaining over 400 existing customer accounts. I believe my work experience has transferred over to the mortgage industry well, because I am able to multi-task effectively while working with multiple customers. The skillset I learned in my previous employment allows me to stay organized and to manage my time well for my customers. My number one goal is always to make the loan process as quick and painless as possible for our borrowers. I am excited to further develop the Police Mortgage brand with my brother. It is a unique situation, and I believe working in an office together allows us to help our borrowers even more due to streamlined communication and our ability to help each other with our respective files. I like to spend my free time relaxing, watching sports, exercising, going out to eat with my wife, and trying to keep up with our three daughters – all under five years old!
After graduating from the University of Missouri in 2015, I moved to Chicago where I began a career in marketing at a firm called Ansira. I sought a career change and contacted Police Mortgage, where I was first introduced to the mortgage industry. I have spent the last 5 years training with our CEO, John Aretos, who has taught me all of the intricacies of the mortgage process. I love finding solutions for our clients to help them purchase the home of their dreams. I feel a huge sense of accomplishment when helping homebuyers, especially first-time homebuyers, all the way through the loan process, from pre-approval to closing day. I recently moved back to my hometown of St. Louis, where we opened a new office. I am excited to help start this new chapter for Police Mortgage. My wife, Megan, and I are happy to be back in our hometown. We are always checking out new outdoor events such as music or food festivals – anywhere we can take our dog, Remy!
As the CEO of an organization associated with serving the Police and their loved ones, I am privileged to play a role in helping our clients achieve their life’s financial goals. Our mission is to make the home buying or refinancing process as comfortable as possible, providing our clients with competitive products and excellent service.
I was born and raised in the Chicago metropolitan area, and I have a deep-rooted love and appreciation for the diverse culture which makes our city so special. My two older siblings and I grew up working in our parent’s restaurant, which instilled a work ethic and sense of family that I carry with me to this day.
I am a graduate of Indiana University and have been involved in the mortgage industry for nearly 25 years, helping thousands of clients save money or finance the home of their dreams. My passions are passing down my love of food, music, art, snow skiing, and red wine to my three children, who motivate me to be a better person each and every day!
