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Do people actually buy mortgage protection insurance?
- Thread starter NFS4
- Start date
darkxshade
Lifer
Protect you how?
I don't own a home.
I don't own a home.
HardcoreRobot
Lifer
someone must, otherwise they wouldnt be asking
also, they can ESAD as far as i am concerned
also, they can ESAD as far as i am concerned
darkxshade
Lifer
ahh ok I was under the impression it's some sort of insurance that protects idiots from not being able to afford a house at a later date due to rate increases... I can't see that being very profitable since it gives people more incentive to be more reckless with their finances.
ViviTheMage
Lifer
PMI?
If you don't have 15% or 20% equity/cash down then you are forced, at least we were 2 years ago :/
unless we are talking about something different.
If you don't have 15% or 20% equity/cash down then you are forced, at least we were 2 years ago :/
unless we are talking about something different.
NFS4
No Lifer
Exactly.
I kinda feel sorry for the person that sold us the house (they are still living there and paying us rent until their new house is complete April 30). She holds our mail for us and I go over there about once a week to pick it up. But when I went by there today, she said that she's been getting like two people a day coming by asking if Brandon is there -- they keep trying to sell stuff ranging from home security systems to other random crap. And this is even with a "No Soliciting" placard that is next to the front door.
By the time we move in on May 1, hopefully we'll have missed the majority of the losers 🙂
ViviTheMage
Lifer
yikes, I hadn't gotten anything after we closed 😛
nanobreath
Senior member
Oye, I hated these damned things. They have started to die off now, I keep getting "final notices"...
kranky
Elite Member
What I find fascinating about mortgage life insurance (and credit life insurance for that matter) is the customer is paying for insurance to protect the lender!
How successful would they be with this approach?
"Sir, as your mortgage lender we are concerned you might die before you pay back the loan. We'd like you to pay for insurance so that if you DO die, we'll get paid in full."
That's exactly how that insurance works. You don't get the money, the lender does. And it's stupid because it wants you to think the best way to use insurance proceeds is to fully pay off the mortgage. Why? The mortgage isn't due in full just because you might die. Doesn't it make infinitely more sense to allow your survivors to have the pile of money, then choose to use it as they see fit? They could continue to make payments on the house if they want, or they might want to use the money for other purposes, or they might want to move to another place.
Mortgage insurance takes all the options away, and guarantees the lender gets all the money. Astounding.
How successful would they be with this approach?
"Sir, as your mortgage lender we are concerned you might die before you pay back the loan. We'd like you to pay for insurance so that if you DO die, we'll get paid in full."
That's exactly how that insurance works. You don't get the money, the lender does. And it's stupid because it wants you to think the best way to use insurance proceeds is to fully pay off the mortgage. Why? The mortgage isn't due in full just because you might die. Doesn't it make infinitely more sense to allow your survivors to have the pile of money, then choose to use it as they see fit? They could continue to make payments on the house if they want, or they might want to use the money for other purposes, or they might want to move to another place.
Mortgage insurance takes all the options away, and guarantees the lender gets all the money. Astounding.
krunchykrome
Lifer
We got them as well when we purchased our home. Just throw them out
funny thing is that all of the letters/offers were adressed to her (if your husband dies...blah blah blah). I never got one addressed ot me.
It kinda worried me for a bit 😀
funny thing is that all of the letters/offers were adressed to her (if your husband dies...blah blah blah). I never got one addressed ot me.
It kinda worried me for a bit 😀
MotionMan
Lifer
We get those things for a while each time we refinance, too.
They are pretty official looking. Some even include a copy of the recorded deed!!!
I can imagine that there are people who get fooled all the time into thinking they are required to pay for this.
Simple rule: Do not buy anything that you did not ask for that comes in the mail, the fax or by e-mail.
MotionMan
They are pretty official looking. Some even include a copy of the recorded deed!!!
I can imagine that there are people who get fooled all the time into thinking they are required to pay for this.
Simple rule: Do not buy anything that you did not ask for that comes in the mail, the fax or by e-mail.
MotionMan
Yeah, a couple years ago when a neighbor keeled over and died, his widow wondered why he bought into that stupid shit, I'm sure. 😉
She would have had a $750k mortgage she couldn't have paid. There was nowhere near that much in the bank or investments. Oh, he also bought that crappy life insurance, so she could have an extra $50 k per year off the investment value.
Yeppers, those insurance products sure suck...until they save someone's home or save them from financial ruin....or help put your kids thru college, if you check out early.
She would have had a $750k mortgage she couldn't have paid. There was nowhere near that much in the bank or investments. Oh, he also bought that crappy life insurance, so she could have an extra $50 k per year off the investment value.
Yeppers, those insurance products sure suck...until they save someone's home or save them from financial ruin....or help put your kids thru college, if you check out early.
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