Innovative Mortgage Payment Protection Insurance

Mortgage payment - The biggest financial commitment you've ever had is your mortgage loan. Being consistent with your payments serve you good in the long run. Timely payments reflect positively on your credit report. You also get to hold on to your collateral and there would be no risk associated with it. There may be insurance cover for both employed as well as self employed. Choose for a more comprehensive package which covers accident, sickness and unemployment.

If you were to fall ill, become bed ridden or meet with an accident, you must take precautionary measures to protect your income. Incase of an inevitable occurrence, you will be paid by the mortgage insurance company. Your redeemed amount will cover up your monthly mortgage payments. Besides this, you will also get to cover up your grocery bills, medical bills and other expenses. Your sickness, inability to work, accident or redundancy will not hamper you from making your monthly secured loan payments.

You may wish to take a separate cover for redundancy. For this, you have a different option known as redundancy protection insurance cover. These standalone policies will cover separate sections and are not comprehensive and inclusive of all. For a more comprehensive cover, you can opt for payment protection insurance which covers all the aspects.

In a nutshell a mortgage payment covers:

- It is an Accident, sickness and unemployment protection cover.
- You will be paid a compensation each month for your monthly expenses.
- Financial compensation is paid till you resume back to work.
- It will be paid directly to you, in addition to any other benefits

Take advantage of a comprehensive policy right away! Most companies will pay some level of sick pay if their employee is off work due to sickness or injury.

The issue is that sick pay only lasts for a short period of time and not all employers pay full salary sick pay. If the employer pays full sick pay then an individual considering MPPI should set the deferred period of their policy equal to the length of their sick pay.

Mortgage payment protection insurance is an innovative solution for those who want to buy a house but are afraid of losing a job or being laid off.

It's common knowledge that today is an optimal time for home buying. In fact this could be the occasion of a lifetime to enter into homeownership. No one imagined we'd see prices dip as low as 30% in various regions?

You've probably heard of builders who are offering incredible incentives such as swimming pools, thousands of dollars in upgrades, complete landscape packages to spark the home buying market.

Well now they are taking it one step further. Builders are offering to help you make your payments if you lose your job.

How? It is called Mortgage Payment Protection Insurance.

The fact is many who would like to take advantage of the economic environment are simply afraid they might lose their job or be laid off. It's common sense that buying a house seems risky amidst unemployment threats.

Out of this concern has sprung a new solution. Some builders, lenders, and even real estate agents are offering a mortgage payment protection plan.

Here is one example of how one of these unemployment mortgage payment protection plans works.

For a lump sum, a builder will contribute between $450 to $900 on behalf of a customer. Some are absorbing the price to purchase the policy just as they would an upgrade to the house. Other builders pass the fee onto the buyer. It goes without saying that smart buyers understand all costs are negotiable.

Builders are offering different versions of mortgage payment protection.

One builder offers a one year membership that qualified buyers can opt into which provides up to four months of mortgage payments in the event of job loss.

Depending on the circumstances, this same home builder pays for a one year payment protection plan. The option of extending past the first year is available if a buyer wants to pay for it.

Keep in mind, insurance regulations belonging to the particular state where you are buying a home can affect the builder's offer.

Another home builder takes care of house payments not to exceed $2500 for six months. The program stays in affect for two years after the purchase.

Other builders offering payment insurance insist upon their lenders of choice to contribute up to $2500 for six months if home buyers lose employment within the first two years after closing.

This offer is note worthy. A builder is actually making the offer to refund all home loan payments if the appraised value falls below the sales price the first three years.

In the event of a job loss, they will take back the property. Interestingly, the icing on the cake is the promise of no resulting mortgage foreclosure or negative credit issues.

I have to say at this point, buyer beware. All the same, these are amazing ad innovative opportunities to take the fear out of home buying.

Real estate agents are also testing the water with the mortgage protection payment idea. My prediction is that the protection plan is going to become a main stream fixture just like home warranty programs.

One real estate company is testing the program in specific regions at a cost of $650 to protect payments up to $2500 for as long as six months. The cost for such a policy can be negotiated between the buyer, seller, lender, or real estate agent.

Read the fine print before you opt for mortgage payment protection insurance. We'll likely witness various adaptations of these arrangements. Because assorted bells and whistles make comparisons complicated, keep the mindset of buyer beware.

Case in point, you may receive just as much benefit from a reduction in price or a request for additional upgrades. So compare numbers and don't assume the mortgage payment protection plan is a deal.

But if job loss is a concern unemployment protection for your mortgage payments may be just what you need to propel yourself back into the buying mode.


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  2. Great thinking about excellent issue,I like your blog fully and good pictures,Thanks for this blog.