How do you make sure that your mortgage is to YOUR advantage
The number one priority when setting out to buy a home is to research the costs associated with the purchase, and they can vary drastically from one broker or banker to another. The interest attendant to the loan is only one aspect of your home purchase and whilst it is negotiable, it will stay in a rather narrow range depending on your circumstances. What will vary, and sometimes widely, is the Mortgage Payments Insurance that most brokers and bankers require as a condition to making the loan. So you must do your homework.
With the internet being what it is, the legwork needed to find the best deals is already done for you. During your research you will get a good idea about what's out there and how you might best insure your mortgage against a temporary inability to pay for it. The most common insurance is Called MPPI or Mortgage Payment Protection Insurance and is designed to pick up the payment if you should become unable to do so due to an accident or illness or because of a temporary job loss. Some mortgages come with six months to a year of MPPI as an incentive but then it's up to the mortgage holder to renew for the longer term.
There are many ways to skin the mortgage insurance cat. One can cover ones mortgage with a life insurance policy and depending on the type of mortgage involved a policy can be modified to the circumstance that will save money in the long run. For instance if your mortgage is interest only then a level term policy will be needed to cover the principle of the loan. If, on the other hand, your loan is a repayment mortgage then money can be saved with a decreasing term policy.
When dealing with insurance companies a cardinal rule is to be as forthright as possible, don't leave anything out. It's not smart to conveniently forget that you had the Bubonic Plague when signing up for MPPI only to have a recurrence a few years later and give the insurance company a reason not to honor your claim. Escaping a slightly higher monthly premium is not worth it when the loss of your house is in the balance. Your selection of the best broker you can find will save you more money than a memory lapse on your insurance application.
Getting the best from your mortgage provider is all up to you, the amount of effort put into finding a provider that you can trust will pay off every month a payment comes due. Skimping on coverage is never a good solution doing your homework is. Remember the time to find a good broker is while looking for insurance or a mortgage. No matter the quality of the broker it's just human nature that you will be treated better as a prospective buyer than you will be as a definite claimant. On the one hand you represent money in their hands, on the other you become an unfortunate expenditure.
Edward D Parry is a highly regarded freelance writer who contributes to a wide range of journals covering consumer interest matters. Get more information regarding Mortgage Payments Insurance.
