My hope is that in this article you come away with a unique perspective on: (1) mortgage financing as being just a way to get the money you need to buy the property you want, and (2) your options to put in place what is known as mortgage protection insurance, thereby protecting the mortgage so that, in turn, you protect your family.
How does taking a mortgage protect you? All cash offers are sometimes a strategy that’s used to get the property you want. Many times, in a hot market, buyers leap before they look—and some things that should be investigated may not be. Property inspections are usually ordered, but when you get mortgage financing you have an objective appraisal, review of your financial ability, and credit reviewed and checked, which can be an additional layer of protection for a buyer. If you are buying a co-op or condo, by looking at the lender’s questionnaire, you may discover any litigation that may be a concern for possible increases in assessments or finding out if the necessary insurance protection and safety issues are in place.
A home is often one of the largest investments a family will ever make, and where you build your life and cultivate your memories. So the questions become: (a) How do you protect that investment? (b) How do you protect the ones you love?
The answer is mortgage protection insurance, otherwise known as life insurance. Mortgage protection insurance protects your family in two ways: (1) Upon death the mortgage can be paid off, and (2) The policy can protect the equity in the property by making sure there is enough life insurance to maintain the dignity of those left behind, allowing them make the existing payments without going into default, and protect the existing home equity.
There are many policy options. I just want to prepare you: What you read below may not be the happiest or most joyous of topics (especially at a party), but nevertheless, there is happiness in having peace of mind knowing that there is protection in place for your family.
Just to give you an idea on available types of policies read below:
Payment Protector is a unique decreasing term life insurance designed to provide a death benefit paid in monthly income payments, until the end of the Monthly Income Death Benefit Period. These monthly income payments can help a beneficiary remain in their home by covering all or a portion of a monthly mortgage payment
Level Term Life Insurance with face amounts low enough to fit many budgets.
Cash Back Option Universal Life gives you the option to have 100% or 50% of premiums returned at the end of the Cash Back Option period. You can have the security of receiving money back if you outlive the coverage, with peace of mind of knowing that you have access to Living Benefits if needed. The following riders can also be added: living benefit, critical illness, a chronic illness and terminal illness.
All I can add is: May we all live in good health until 120 … Adequately protected!
Carl Guzman, NMLS# 65291, CPA, is the founder and president of Greenback Capital Mortgage Corp., a Zillow 5 star lender (http://www.zillow.com/profile/Greenback-Capital/Reviews/?my=y). He is a residential and reverse mortgage financing expert and a deal maker with over 26 years of industry experience. Carl and his team will help you get the best mortgage financing for your situation and his advice will save you thousands. Visit him at www.greenbackcapital.com or [email protected].
