Mortgage insurance is expensive life or disability insurance. If you need life insurance, buy life, but not the kind they sell for mortgages as it is not priced as cheaply as straight life insurance. If you have no spouse or dependents, life insurance is not needed. If you go, let the bank have the house; you wont need it.
2007-03-04 14:06:55
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answer #1
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answered by Anonymous
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If you are really considering mortgage insurance, you are wasting your time.
Mortgage insurance would only pay off the mortgage....but your heirs will have many more needs than just paying off the mortgage.
You should spend that time researching life insurance which will pay for anything your heirs need....not just the mortgage.
Because of intense competition, the price for good term life insurance has dropped dramatically over the last 10 years or so.
There are many competitors and the price is rock bottom.
If you have a house and loved ones to protect....buy as much level premium term life insurance as you can get. Ten year is lower cost initially but the jumps in cost every 10 years are a lot. You can now get a 20-year level premium term policy for a little more a month....but that premium stays level for 20 years.
As you age and pay off things....the need for as much insurance drops and you can scale back on your amount upon renewal and the jump in cost won't be as much.
Mortgage insurance is pushed so hard because it is very expensive and comes with a very, very big commission for the agent.
You are MUCH better off going to a life insurance agent and getting a high quality, low cost term life policy.
2007-03-04 17:21:29
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answer #2
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answered by markmywordz 5
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While I agree that mortgage life insurance is a much more expensive version of insurance that you likely already have (such as disability, health and life insurance), you are covered for one instance that no other insurance policy will cover you for and that is job loss. However, check the fine print -- it may stipulate that if you leave a job voluntarily that they won't pay, so you'll have to keep that in mind.
One other point: mortgage insurance will pay off your mortgage without the process having to go through your estate. This can be a benefit to a grieving spouse who may not have the resources to pay the mortgage (or may have all joint bank accounts tied up as a result of the death). The payment will go straight to the bank, and this will be one less thing for the bereaved person to deal with. All they will have to do is send the appropriate documentation to the insurer.
Something to consider, depending on your circumstances.
2007-03-05 00:43:47
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answer #3
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answered by MoniqueLise 3
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Mortgage life insurance is an interesting concept and quite appropriate for many people although not everyone.
Mortgage life insurance is often confused with PMI (primary mortgage insurance). Mortgage life insurance has nothing to do with PMI or the actual mortgage except for the fact that it is decreasing term life insurance that is designed to pay off the remaining mortgage balance should the insured die.
There are a few things to watch out for. A good resource article is: http://www.lifeinsurance360.net/Term_Life_Insurance/Mortgage_Life_Insurance.htm
2007-03-05 11:15:47
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answer #4
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answered by LMR 1
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Mortgage insurance is reguired if you are to borrow more than 80% if you are using goverment insuranced loan as Fannie Mae, Freddie Mac. but if you were to use Va or Sub -prime lender you are not required You motgage broker will advice you A reputable provider is Citi Financial, I love there Mortgage insurance they also happen to do mortgages
2016-03-28 23:41:22
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answer #5
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answered by Anonymous
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I might suggest that you visit this site where you can get quotes from different companies: http://insurecheap.us/index.html?src=2YAop76alyUr
RE :Mortgage insurance -- is it worth it?
I have been getting solicitation to purchase mortgage insurance from a few companies in some ways related (but not affiliated) with my credit union I obtained my mortgage through. This particular one covers job loss, disability, death.
My question is that is it worth it?
How much should I expect to pay (in premium)?
What type of questions should I ask?
What loopholes should I be aware of?
Thanks
Follow 9 answers
2016-09-12 00:13:11
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answer #6
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answered by Lynn 6
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I have a small home equity loan on my house. I got it to pay off my credit cards. I took out the mortgage insurance because I can afford the premium. I figure the more insurance we can carry, the better in the long run.
2007-03-05 04:51:16
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answer #7
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answered by Me, Myself & I 4
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No, it isn`t, it`s brutally expensive. Have it covered under your life insurance policy as a rider.The average mortgage insurance cost between, $50-$75 extra a month. If you going to go with the life insurance option, make sure you have term insurance .
2007-03-04 12:25:32
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answer #8
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answered by lost2day 6
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Because you don't want your family to risk losing their home in the event of your death, it should go without saying that some type of coverage is necessary. Traditional mortgage insurance is actuarially expensive, and has a decreasing death benefit. Even though your mortgage balance decreases, that balance is all that is paid. Assuming you are in reasonably insurable health, a level term policy would likely be less expensive, and the death benefit would not decrease with the mortgage balance.
2007-03-04 14:11:12
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answer #9
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answered by Rob D 5
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I might suggest that you visit this site where you can get rates from different companies: http://COVERAGEQUOTES.NET/index.html?src=5YAqqC1AOR8gjm1
RE :Mortgage insurance -- is it worth it?
I have been getting solicitation to purchase mortgage insurance from a few companies in some ways related (but not affiliated) with my credit union I obtained my mortgage through. This particular one covers job loss, disability, death.
My question is that is it worth it?
How much should I expect to pay (in premium)?
What type of questions should I ask?
What loopholes should I be aware of?
Thanks
Follow 10 answers
2017-03-21 14:33:19
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answer #10
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answered by ? 6
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