I am deciding between mortgage insurance or just use that to buy additional life insurance. Is mortgage insurance a better deal because they would pay your mortgage if your lose your job? Are there another concerns I should know about? Thanks for info.
i've heard realtors say that mortgage insurance is virtually worthless. given that, i'd opt for life insurance, depending on how well you're protected right now.
My father has sold this stuff for years... and for the price, it's kind of stupid not to. If you lose your job, become injured or even die your mortgage is paid for...
Ahh, misread the original post. I'm with Max... you can get Mortgage term life insurance, which covers just about anything. Mortgage insurance is a joke when compared to life insurance that covers your mortgage.
Mortgage insurance is usually worthless. That's why so many people sell it. When we bought our house, we had over 30 offers for mortgage insurance in the1st month. If you want protection, buy regular life insurance or disability coverage - something not tied to the mortgage.
But let me also say, this isn't even an issue if you're not putting down roughly 20% at the time of purchase. Then, most mortgage companies will require it...and they'll be the ones choosing the company who provides it.
I think there are 2 different things being discussed. One being PMI which is what you just described. Another is a totally separate policy which will pay your mortgage (generally only a set number of payments) should you lose your job or have some other sort of catastrohpe.
Me too. I usually just stuff some trash, pennies, and pocket lent in the return envelope and send it back to them. Totally worthless.
Are you guys talking about PMI (Private Mortgage Insurance)? I'm having to pay that crap right now on my house. From what I was told, I will continue to be charged the PMI until 20% of my loan is paid off. At that point I can ask them to remove it. I've heard some people taking out two seperate loans, so they can avoid the PMI on a home purchase....anyone have some more info on that? I'm looking to move soon and I'd really like to avoid it. I think it costs me around $100/month and as far as I know that gets me nothing.
Get the life insurance...but get whole life in case you need to borrow against it if you lose your job. Mortgage insurance is useless. If you cant afford the house, sell it...dont bother with the mort ins.
Good point. Guess in that case I won't be making much on the house. The housing market around here have been flat for a while, everyone just build a new one instead of buying the old ones.
If you spend money from your 401K or your IRA before you retire, you will need to buy lots of ice. The ice will be for your ******* after Uncle Sam is done reaming you with penalties and taxes.
