Is Investing In Mortgage Insurance A Good Idea?
People wonder whether they will need mortgage insurance or not.
Let’s make it simple. Here’s your answer. If you own a home and you are paying a mortgage, you need mortgage insurance.
Why Do I Need Mortgage Insurance?
You need mortgage insurance because life is variable. So many things can happen that put you in a position where you cannot pay your monthly mortgage.
All homeowners need a contingency plan. You don’t want to think about being homeless just because life happened.
OK, I Need Mortgage Insurance – What’s The Next Step?
The first thing you should do is speak with your mortgage company. Speaking with your mortgage provider will give you peace of mind. They will let you know exactly what your responsibility is in terms of your mortgage.
They are also professionals when it comes to mortgage insurance since many of their clients have, unfortunately had to use mortgage insurance protection.
Death & Taxes
Of course, if you’ve already paid off your mortgage, you don’t need mortgage insurance protection. However, you have to consider the taxes on your home such as property taxes and the taxes that are required for certain municipalities in your area. You would have to have proper protection to pay those in an event of a loss of income.
There is a particular type of mortgage insurance called job loss mortgage insurance. The great thing about insurance is when you speak with an experienced professional they will let you know exactly what stipulations should be placed on your policy. Insurance is a very variable vehicle; it can be written specifically to cover things that keep you up at night.
This type of insomnia varies from individual to individual. The self-employed have their own mortgage protection Issues, while an employee has a different type of mortgage insurance protection issue.
That’s why it’s important to seek a professional in these matters. After a thorough discussion, you’ll be able to determine exactly what you need for your unique situation.
In addition to employment variables, other factors in life weigh heavily on your ability to pay your mortgage.
People say, “Mortgage payments don’t matter if I’m dead.“ In the real world, we know they do. Your family and other responsibilities remain. You may want mortgage insurance protection to cover payments in the event of your demise.
Divorce is yet another factor that may impact your ability to pay your mortgage. Seeking professional assistance with your decision to acquire mortgage insurance protection is the best idea.
In this way, you will not leave any stone unturned and you will deeply consider your options as well as what unique life situations bear on the matter.
A Word Of Caution
Understand the following; mortgage insurance protection does not generally provide protection if you are fired, quit or if you leave employment due to health reasons.
Again, issues to speak with a professional about because the culture of your life may dictate that you need mortgage insurance protection in these events. You may have to acquire another insurance product to cover unique circumstances.