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#1
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Insurance to pay mortgage if you get laid off?
Hi I just got a house and a 30 year mortgage. I've been inundated by
advertisements in the mail from insurance companies looking to sell me a policy that will pay my mortgage for 6 months if I get fired. This actually sounds like a good idea to me but I've never heard of these companies and they sound shady, like they will find some reason no to pay me if I did get fired. Is this kind of insurance legit? Are there legit companies selling it? Thanks. |
#3
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Insurance to pay mortgage if you get laid off?
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#4
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Insurance to pay mortgage if you get laid off?
In article , says...
writes: Hi I just got a house and a 30 year mortgage. I've been inundated by advertisements in the mail from insurance companies looking to sell me a policy that will pay my mortgage for 6 months if I get fired. This actually sounds like a good idea to me but I've never heard of these companies and they sound shady, like they will find some reason no to pay me if I did get fired. Is this kind of insurance legit? Are there legit companies selling it? Thanks. As for unemployment inusrance for your mortgage... If you are in a high risk industry and in danger of being laid off and would be facing a LONG job search, and th ehousing market is crap, then maybe it'd be some risk mitigation that'd be worth it to you. For most folks, the old standby of having 6 months of salary in the bank is a more effective use of the $ for the insurance. Also, if you're in a position covered by unemployment, could you make your mortgage payment relying on what you're likely to receive in unemployment compensation? Lots of people have taken out mortgages with such high payments that they couldn't get by on unemployment, but if you were conservative in your mortgage choice, you have less to worry about in unemployment. For those facing longer unemployment, if you have some equity built up, you could also consider a cash-out refinance to cover your unemployment expenses. Not a great situation to be in, but what's the probability you'll need it vs. the certainty of paying mortgage unemployment insurance every month? On a related note, anyone familiar with foreclosure? How much slack do mortgage companies generally give folks to overcome such problems and get behind on their payments? i.e. in a real scenario where you can't make your payments, do mortgage companies rush into foreclosure, or will they give you several months to get back into a job situation etc? I've fortunately never known anyone that's been through that. It varies a lot by company, location, and creditor. Some companies will give you a lot of slack if you have a good credit history and fall on hard times. Others will move fairly quickly if you're a marginal risk to begin with and they want to stem further losses. If you have good credit and have some equity in your home, it can be cheap insurance to open a home equity line of credit while you're employed, and keep it as a reserve for hard times that deplete your savings. If the hard times are temporary, you can borrow your mortgage payments from your HELOC, as long as you have the self-discipline to pay it back when you have money again. Disclaimer: not a home finance expert, just familiar with various ways clients of mine have dealt with prolonged unemployment. -- is Joshua Putnam http://www.phred.org/~josh/ Braze your own bicycle frames. See http://www.phred.org/~josh/build/build.html |
#5
Posted to misc.consumers.house
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Insurance to pay mortgage if you get laid off?
writes:
Hi I just got a house and a 30 year mortgage. I've been inundated by advertisements in the mail from insurance companies looking to sell me a policy that will pay my mortgage for 6 months if I get fired. This actually sounds like a good idea to me but I've never heard of these companies and they sound shady, like they will find some reason no to pay me if I did get fired. Is this kind of insurance legit? Are there legit companies selling it? Thanks. Yeah they're legit by and large. insurance companies will sell insurance on damn near anything they can hedge a bet on. Mortgage protection insurance is something I'm offered every damn month by my mortgage company. For death, I think it's silly -- you have life insurance for that, and if you don't, whoever owns the house after you're gone can do the normal thing and sell it to get out from under the mortgage. The beneficiary of mortgage insurance is the mortgage company further reducing their own risk. As for unemployment inusrance for your mortgage... If you are in a high risk industry and in danger of being laid off and would be facing a LONG job search, and th ehousing market is crap, then maybe it'd be some risk mitigation that'd be worth it to you. For most folks, the old standby of having 6 months of salary in the bank is a more effective use of the $ for the insurance. Never forget that if it weren't profitable for the insurance company, it wouldn't be offered, so it's genreally wise to only insure against things that'd financially ruin you or cause a huge huge impact to your family. On a related note, anyone familiar with foreclosure? How much slack do mortgage companies generally give folks to overcome such problems and get behind on their payments? i.e. in a real scenario where you can't make your payments, do mortgage companies rush into foreclosure, or will they give you several months to get back into a job situation etc? I've fortunately never known anyone that's been through that. -- -- Todd H. http://www.toddh.net/ |
#6
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Insurance to pay mortgage if you get laid off?
On Mon, 27 Nov 2006 18:43:39 -0700, someone wrote:
Do you realize you can double your payments... Not if he's unemployed. Do you realize that if you pay cash, you have it all paid for the first day? But how many people can do that? Reply to NG only - this e.mail address goes to a kill file. |
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