Regular reviews оf your protection needs should be performed, particularly іf your circumstances change.
Mortgage protection insurance differs from private mortgage insurance (PMI), which lenders often require borrowers with less than 20% down payments tо purchase homes with.
Mortgage protection life insurance pays off your remaining mortgage balance іn the event оf death оr disability, and may cover payments should you become unemployed.
A last minute closing emergency mortgage can be a stressful situation. However, with the right protection іn place, you can minimize the financial impact оf unexpected events.
1. Contact Your Lender
Mortgage payments are one of the biggest financial commitments most people will ever undertake in their lives, so many opt to purchase mortgage protection insurance (MPI) or term life insurance in order to protect their home investment if something arises that prevents them from making monthly mortgage payments.
As part of the mortgage application process, it is imperative for borrowers to be as candid and forthcoming about their finances as possible. Unfortunately, some borrowers unknowingly make changes that raise red flags with lenders; for instance, applying for new credit after being preapproved could reduce your score considerably.
Changes to employment status or income may also raise red flags with mortgage lenders; most loan approvals rely on these two criteria listed on an initial loan application; any change can lead to delays or denial of loan approvals.
2. Contact Your Insurance Company
Mortgages are one of the biggest financial commitments you’ll make, so having life insurance in place is vitally important to protecting your family from being left with any remaining balance due to death or disability. Mortgage protection insurance (MPI), is a type of life insurance designed to cover mortgage payments should something happen to you; its death benefit goes straight to your lender rather than beneficiaries as part of its definition.
Shopping around for insurance providers that can offer competitive rates and coverage options is key to finding one with which you feel satisfied. To research companies, the NAIC’s consumer insurance search tool can be helpful, showing details like closed and confirmed complaints against each insurer as well as financials and direct premiums written. Plus it is free!
3. Contact Your Attorney
When your lawyer consistently ignores repeated phone calls or fails to reply to emails or declines a meeting with you, it may be time for a change. Such behaviors could indicate their case is no longer progressing well and they no longer care.
Your mortgage is one of your major financial responsibilities and the last thing you want is for something unexpected to impede payments. Mortgage protection insurance (or term life insurance) provides your family with peace of mind by guaranteeing lenders receive their money if payments become impossible for whatever reason.
As your needs change over time, so should the type of protection that fits best into your lifestyle and budget. Therefore, it is vital to regularly review these needs in order to find an ideal policy solution that matches them both.
4. Contact Your Bank
One of the largest financial commitments that adults make is taking out a mortgage, and falling behind on payments can result in interest charges, late fees and even foreclosure proceedings. Therefore, it is crucial that a plan be put in place in case you become disabled, lose your job or pass away; mortgage protection insurance provides this safety net in various forms – disability insurance, unemployment insurance and life coverage are just three such plans available today.
If you need to call your bank, use your hold time wisely by writing down questions or reviewing account information while waiting. Many banks provide callback services whereby you leave your number and are called back when it’s your turn in line. Also check their social media pages regularly as many times a question about fees or post about an unpleasant situation prompts the company to reply directly.
