uying a house is one of Should you buy it?
the most expensive things
most people will ever do. That depends. The idea is
With the average home in the certainly a good one; no one
United States now costing more wants their family to become
than $200,000, it will take a homeless in the event of an
half a million dollars to buy it untimely death. On the other
outright once the interest on the hand, such a policy is rather
loan is taken into consideration limited. It does one thing only –
and for most people, thirty years it pays off the mortgage. A
of hard work. But what if better alternative might be a
something happens to you during term life insurance policy, which
the life of your mortgage? What would simply pay cash to a
will happen to your family if you designated beneficiary. He or she
should die before the house is could then use it to pay off the
paid off? Will they have a place mortgage or they could use if for
to live? other needs. This might offer
greater flexibility than would
One solution to this scenario, mortgage insurance.
called mortgage life insurance,
is offered by most lending Term life insurance might be
companies. This is an insurance cheaper, as well. This will
policy that the buyer purchases depend on the age and health of
along with the loan; the premium the applicant. For someone under
is added to the monthly house 40 in good health, term insurance
payment. Should the buyer die or might be a great deal cheaper.
become disabled, the home loan For someone older, someone with
will be paid off. poor health, or someone who
smokes, the mortgage insurance
This may sound like a good idea. might be a better deal, as
premiums for life insurance can anyone who has any questions
increase dramatically under those about it should probably consult
circumstances. Most people who with both their insurance agent
wish to protect their assets and a representative from their
would probably be best served by mortgage company.
a term life insurance policy,
About the Author:
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.homeequityhelp.net, a site devoted to information regarding home equity lending.
