I have 2 loans on my house. I went with the 80/15/5 plan. Thats one large loan 80%, a 15% loan, and 5% downpayment. The 15% loan is very close to what a PMI payment would be and it is tax deductible too.
I don't think it is, but is this the same as PMI (Pvt. Mort. Ins.)? If so, no, but if you don't have 20% down, you have to have it...
I was looking at some of the prices. It seems they ask for about $20/month for $120,000 of insurance. Not sure that private mortgage insurance cost.
Believe me, I know this. I haven't touched either one since I started them and I don't plan on doing so until I retire. It's just nice to know it's there if there really is a true emergency. I work for a retirement plan company and I see people that take a hardship withdrawal every single pay-period. I really don't know why they even contribute to a retirement plan if they're just going to raid it twice a month and pay all the taxes and penalties.
Isn't it the American way to be patroitic by spend and live beyond your means? I know people who borrow to get new cars, go on vacation, etc...
Mortgage Term Life Insurance. Basically if you die or become disabled where you can't work, your house is paid for. Depending on your age and size of the home loan it usually only costs 15-40 bucks a month.
Look into permanent too - usually you get money back on that (Omaha, for instance gives a 4% minimum) which can be another retirement fund. Also, don't skimp on the amount - ask for around 500k. You may not need that much to cover your mortgage, but if you eventually move into a more expensive home and want larger coverage you'll have to reaffirm your health etc. Best to avoid any potential problems IMO
Some term life insurance plans give you returns too. If you have any questions feel free to call my dad, his name is Bob and the name of his company is GC Marketing Services, Inc. His direct number is 1.866.897.2067... he'll be happy to answer some questions for you, just tell him Brad sent ya, he's not a push salesmen or anything, he's been selling insurance and annuities for 30 years or so...
I can sell a product that is mortgage term life insurance. It provides LIMITED payments (i.e. 18 or 30 months) for unemployment of disability. Otherwise it is just a 15 or 30Y Level Term Product with those riders available. Your mortgage has to be less than 5 years in age. I'm not a big fan of the product, but it has simplified issue so it is a little more expensive.
