The having of Mortgage Insurance is strictly a personal choice, but one that should not be taken lightly. There are many factors to consider and many products to choose from.
Firstly are you single or married? Are you single parents or with children? Did you buy the home by yourselves, or to qualify for the mortgaging did you have to get guarantors or co-signers?
Often times only insurance is placed on the major wage earner (usually the husband). But in the event of the death of the wife/mother will the survivor have sufficient cash flow to hire the child care agencies, pay the costs of providing for the children and make mortgage payments? Or worse still with the demise of both parents, will the children have sufficient funds to fare through life, after the costs and debts gnaw away at whatever was in the estate of the parents? Or in the case of the guarantor will he or she be able to carry their own mortgage and the additional burden of yours?
The claim that they can simply sell the house sounds well, but if the property was bought with a small down payment then the costs of disposing of the real estate could well exceed the equity in the house.
CAUTION, a little known fact. When you enter into a contract to buy a house or other real estate it is a binding contract on you, your heirs and your estate. To put it simply, on the day of the closing of the transaction someone better show up with the money. If something (death) has happened to one of or both of the purchasers their estate can be sued for the full value of the purchase price. Also please note a mortgage company will not advance money to someone who is deceased.
It is suggested that life insurance be in place to cover the full price of the purchase at the time of the signing of the finalized contract to purchase.
Click here for a comparison of individual life vs. creditor group life, which points out the advantages of your own life insurance policies against mortgage insurance provided by the mortgage lender.
Rates For
Fri, Sep 3, 2010
6:55 am
| 1 Year (Closed) | |
| CIR: 2.60 | Bank: 5.55 |
| 1 Year (Convertible) | |
| CIR: 2.60 | Bank: 5.55 |
| 1 Year (Open) | |
| CIR: 2.60 | Bank: 5.55 |
| 2 Years | |
| CIR: 3.25 | Bank: 3.45 |
| 3 Years | |
| CIR: 3.70 | Bank: 4.30 |
| 4 Years | |
| CIR: 3.89 | Bank: 5.24 |
| 5 Years | |
| CIR: 3.89 | Bank: 5.50 |
| 7 Years | |
| CIR: 4.85 | Bank: 5.70 |
| 10 Years | |
| CIR: 5.19 | Bank: 5.89 |
