Is mortgage protection right for you?
The use of mortgage protection has become more widespread lately. Mortgage protection allows you to pay the house payments, even though you are not getting any regular income. There are many mortgage protection offers on the market, so it's important to choose the right one for you.
A lot of times people purchase mortgage protection from the lender that helped them with getting a mortgage. If you did this, there is a chance that you're paying too much money for your mortgage protection coverage. If so, it's good to know that it is pretty easy to switch from one mortgage protection provider to another.
Mortgage protection provides an extra revenue stream for a lender. If you know this, it's easy to see why many lenders automatically attach mortgage protection to a mortgage. Many times however, other insurance providers can provide you with mortgage protection in a more cost efficient manner. Sometimes, a lender will try to tell you that it is mandatory to get mortgage protection with your mortgage. Don't buy this advice, because this is not mandatory.
Mortgage protection comes in handy when you are unable to work or generate income otherwise. Your mortgage payments are paid for a period of 12 - 24 months, depending on the kind of mortgage protection that you have purchased. When you suddenly lose your job, fall off some steps or get injured, it is a big relief when you know you can always pay the mortgage bill for some time.
When purchasing mortgage protection, be sure to consider every available option for your situation. Mortgage protection is a good product, but you have to be careful where you get it. Because of the fact that mortgage protection represents a possible extra income stream for lenders, the advice they give you might not always be as unbiased as you think.
A lot of times people purchase mortgage protection from the lender that helped them with getting a mortgage. If you did this, there is a chance that you're paying too much money for your mortgage protection coverage. If so, it's good to know that it is pretty easy to switch from one mortgage protection provider to another.
Mortgage protection provides an extra revenue stream for a lender. If you know this, it's easy to see why many lenders automatically attach mortgage protection to a mortgage. Many times however, other insurance providers can provide you with mortgage protection in a more cost efficient manner. Sometimes, a lender will try to tell you that it is mandatory to get mortgage protection with your mortgage. Don't buy this advice, because this is not mandatory.
Mortgage protection comes in handy when you are unable to work or generate income otherwise. Your mortgage payments are paid for a period of 12 - 24 months, depending on the kind of mortgage protection that you have purchased. When you suddenly lose your job, fall off some steps or get injured, it is a big relief when you know you can always pay the mortgage bill for some time.
When purchasing mortgage protection, be sure to consider every available option for your situation. Mortgage protection is a good product, but you have to be careful where you get it. Because of the fact that mortgage protection represents a possible extra income stream for lenders, the advice they give you might not always be as unbiased as you think.
About the Author:
Mijnadviseur writes articles about mortgages in English and articles about tophypotheek and hypotheek aflossen in Dutch.
posted by Credit Counseling at
7:17 AM
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