Mortgage insurance is a wise move. Should anything happen to you, your spouse would be protected by having mortgage insurance. The house would be paid for and your family’s financial security would be a little bit better off. Or, if you have mortgage insurance that is triggered by your disability or being unable to work, then you and your spouse are both covered if something bad should happen.
Mortgage insurance actually is such a good idea that many mortgage companies, in fact most of them, insist on it. That is wise on the part of the mortgage company because it provides them with additional security, and makes it easier for them to justify loaning you the money for your mortgage. From a business standpoint it really just makes sense both for you and for them.
Take, for example, the case of Mary Jones. Mary and her husband Tom worked hard to get a down payment together to buy a home. They had three children and Tom and Mary decided that they would both prefer that Mary stay home with the kids and quit her job. Tom had a good job and a nice paycheck so it wasn’t a burden. However, Tom was tragically killed in an auto crash. This left Mary alone to support the family without an income. Fortunately Tom had adequate life insurance and he had mortgage insurance.
Mary received a check from the life insurance company large enough to support her and the kids until they were grown, and another check she used to pay off the mortgage on the home, from the mortgage insurance company, which took away the largest monthly debt she had to pay on and gave the family the security of actually owning the place where they lived. They no longer had to worry about making the house payment. The mortgage insurance took care of that for them.
Mary’s case isn’t unique. Every year in America thousands of people depend on mortgage insurance when unexpected tragedy occurs. Mortgage insurance looks like a burden to those who pay it until they think about the amount of protection it provides. Mortgage insurance is one of those things that you are very glad to have when you finally need it. Having mortgage insurance, for many families, has made all of the difference in security, in having a roof over their heads, and in knowing that their futures were secure.
Watch the video related to mortgage insurance
Private mortgage insurance (PMI) tips & how it can determine how much house you can afford. Find out how in this video on buying a home.Expert: Brett Staggs Contact: myspace.com/slowtrainmusic Bio: Brett Staggs has been working in the mortgage industry for the past 6 years. He has worked for a title company, a credit reporting company, and two major banks. Filmmaker: Dana Glover
Help answer the question about mortgage insurance
Is it a bad idea to get CMHC mortgage insurance when buying a house?My friend is planning to buy a house in Ontario. He's pretty young, in his 20s and he might buy another house when he starts a family. He asked me if its a bad idea to get CMHC mortgage insurance when buying a house? Does it put a black mark on his credit record and effects him when buying another house later on? Also I heard, starting October everyone in Canada has to put a 20% when buying a house. Is this true?
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Ken Charnly is a personal finance publisher whose website Online Loans is dedicated to quality information on online loans. For quality information and for all your online loan needs visit and Apply for Loans Online
Mortgage insurance is also called decreasing term. It's for the remainder of the mortgage, if you die, and only pays the payoff. It costs MORE than regular term.
So, you're BETTER off if you buy a level term policy – it's cheaper, and it DOESN'T decrease each year.
There's ALSO disability coverage. It's a different policy, and depending on your ages/health, it can be pretty expensive. Unemployment is NOT a private coverage in the us, you can ONLY get it through your state unemployment office.
Talk to your agent that does house and auto – ask him if he sells level term coverage, and/or disability coverage. If he doesn't, ask him for a LOCAL referral. IF you're with a direct writer, ask a neighbor or friend who their local agent is.
I really really strongly recommend dealing with a local agent. If you can't find one, these guys are pretty good, and licensed in most of the 50 states: http://www.zanderins.com