5 Benefits of Mortgage Protection Insurance
If you just bought a home and are paying monthly mortgage payments, chances are that you are getting a lot of mail regarding mortgage protection insurance. Mortgage protection insurance can be important in the instance that you might not be able to pay your one of your monthly mortgage payments. There are plenty of reasons why you might suddenly not be able to pay your mortgage, like an illness that prevents you from working and making an income, or you have been laid off. However, mortgage protection insurance will help pay your mortgage if you find yourself in a pinch so that you don’t have to worry about your home going into foreclosure. With the housing marketing and the economy the way it is now, mortgage protection has a number of benefits. Here are 5 benefits of mortgage protection insurance.
- One of the biggest benefits is that almost anyone can get accepted for mortgage protection insurance. Unlike other insurance providers, getting approved for private mortgage insurance is one of the easiest forms of insurance to get. Mortgage insurance is considered low risk for many providers and doesn’t require the same stringent screening process that other insurance providers have.
- Another benefit is that your mortgage protection insurance is deductible on your taxes. This can be a huge boon, especially for people who are concerned about their finances to begin with. If you are already a homeowner you know that you are already applicable for a lot of tax deductions, but now you can have your mortgage insurance written off as well.
- Mortgage protection insurance also gives you a chance to be a homeowner sooner than you think, especially if you have bad credit or are considered a risky bet to lenders. If you have poor credit, chances are that your down payment is going to be significantly larger. However, with mortgage insurance, you can effectively reduce your down payment by up to 20%, because you are deemed less of a risk. With private mortgage insurance, a lender will be less concerned about you not being able to pay one of your mortgage payments, because they know you have protection to back you up.
- Another benefit is that getting private mortgage insurance might be the only way for someone to become a homeowner. Some lenders won’t even consider someone for a mortgage if they don’t have insurance first. However, if you find an affordable mortgage rate at www.ratesupermarket.ca and want to put a down payment on a house, it might be worth it to spend the $50 to $100 a month on mortgage protection insurance.
- Lastly, mortgage protection insurance will allow you to rest easy knowing that if anything goes wrong you won’t end up losing your home, which could be devastating. As people are recovering financially from the housing crash, some people learned this lesson the hard way. As banks were handing out loans knowing people couldn’t really pay them back, people were losing their homes to foreclosure left and right. However, with mortgage protection insurance you will be safe even in the instance that you lose your job or get laid off. In the end, it is much better to have protection, especially in today’s weary and ambiguous financial times.