With unemployment approaching 10%, there are an increasing number of foreclosures happening because of loss of income. When someone loses their job, statistically they are dramatically more likely to miss payments on their mortgages and fall into foreclosure. It’s estimated that there may be between 2 and 3 million foreclosures in the
A homeowners insurance policy protects the homeowner from having to pay damages due to an accident, theft, or act of nature. A mortgage insurance policy protects the lender from loss and protects the policy holder from losing their home. If you lose your job or fail to make your mortgage payments for any reason, you mortgage insurance policy will kick in and start covering the payments to your lender.
Mortgage Insurance: The Benefits
Mortgage insurance offers several benefits such as: prevents the homeowner from losing their home, protects the lender from lost payments, allows buyers to buy a home with less than 10% down, and allows home buyers to buy a property sooner since there is no need to wait for a full 10% down payment. So not only doesn’t it provide the security of knowing that you will always retain your home but it can allow you to purchase a home sooner with a smaller down payment.
It’s Important to Act Ahead
It may be a very unpleasant thought to think about, but you should always be prepared in the event you or a loved one loses their income and it puts your financial security in jeopardy. Investing in a solid mortgage insurance policy can provide the peace of mind and the safety net you need in these tough economic times.It’s always recommended to compare quotes from multiple different companies to find the best rate. Using a service like InsuranceAgents.com you can compare up to five mortgage insurance quotes and compare them to see who has the best offer. (Tom Lustina)