Mortgage Life Insurance: What Is It?

Every year, millions of people either refinance there mortgage, get a home equity line of credit or buy a new home. With such a large purchase comes responsibility. To make sure that the home stays with the family in case of the mortgage payor(s) death, people will carry a mortgage life insurance plan. What exactly is mortgage life?

Simply put, mortgage life insurance is usually a term life that will pay off your mortgage loan in the event of your premature death or that of the co-borrower or both. It usually is offered by a lender or directly by an insurance company.

Mortgage life is sometimes called mortgage protection insurance or loan life insurance.

It is not to be confused with PMI which stands for Private Mortgage Insurance or LMI which stands for Lender Mortgage insurance. PMI and LMI do not protect the borrower, it protects the lender. It is often a requirement when a borrower puts down less than 20% of the amount borrowed. In case you default on the loan, the lender is at least guaranteed that 20% of the loan will be paid back by an insurance company. The lender buys the policy and passes the cost on to you.

Beware as there are many types of mortgage insurance plans. Some plans only pay in case of accidental death and those are usually offered by lenders. Some mortgage life insurance plans decrease in value as your mortgage debt decreases. Some mortgage life insurance plans allow you to transfer the insurance to another lender or loan which is often done as people are always on the look out for better interest rates. Plans that are not portable have the potential of being canceled without you approval. Although, some lenders will require that you sign a waiver to opt out of their mortgage life insurance, know that this waiver may serve only one purpose - and that is to make you reconsider your decision to opt out of the lender's mortgage life insurance plan.

With all mortgage life insurance, you are entitled to full disclosure of benefits and restrictions. If you have your own private mortgage life insurance plan, all details should be with the policy. If you opt for a lender's mortgage life insurance plan, you may need to request a copy of the master policy (as you will only get a certificate).

In some cases, particularly with private plans, additional riders will be available that can greatly enhance the value of your mortgage life plan. Some riders may include terminal illness, disability, long term care and more. Make sure to ask your lender or advisor about these potential additional benefits.

I hope this gave you a better idea of what mortgage insurance is. Selecting the right plan can be tricky, so please ask as many questions as you need to. This could be one of your most important decisions. Be well.

Philippe Deray - About the Author:

Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address is http://www.mcdlife.com/mkt/mi.html

Our Focus: Life Insurance for people who have or have had health problems.

With many years of experience in the insurance business, we have developed proprietary methods to help individuals get affordable mortgage insurance. We offer term insurance, whole life and universal life insurance. We will make this process as simple as possible and get you an answer as fast as possible.

Company Profile

MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST! Our primary mission is to bring peace of mind to our clients by offering innovative, value-added products and information that place emphasis on short and long term benefits, benefits backed by selected companies with high quality assets and written guarantees.

Mortgage Life Insurance Quotes

A mortgage is a method by which individuals or businesses can buy residential or commercial property without paying the full value upfront. The borrower, the person buying the real estate by paying a part of the total money on a contract basis, is often called the mortgager. The borrower or the mortgager then uses a mortgage to pledge real property to the lender, who is more than often called the mortgagee. It is usually put forward in the shape of a security against the debt (also called hypothecation) for the rest of the value of the property.

Meanwhile, taking care of one's health is not just about curing various diseases, or even preventing various things that might have an adverse effect on the general health of the people. The first step for an individual is to have a comparative evaluation of health insurance quotes from a considerable number of health insurance plan providers.

This not only makes an individual aware of the different life insurance plans that these companies have to offer, it even facilitates the individual to make informed decisions about the exact kind of health insurance plans he or she wants to buy.

Online resources for mortgage life insurance quotes give an individual the chance to save time as well as money. The advantages of online mortgage life insurance companies are that one can make decisions easily, as ready comparisons are available to him. Various companies announce their insurance rates and quotes in such a way that almost all people can afford to take advantage of the various mortgage life insurance companies around the country.

Mortgage Life Insurance Leads

Mortgage life insurance leads can be a nice profit center for any insurance agent. It is often used as a method by which individuals or groups of people can secure their health to get full financial assistance in the future to buy health insurance without paying the full value upfront. The mortgage life insurance leads are generated mainly through major search engines like Google, Yahoo or MSN. By finding mortgage life insurance leads on such search engines, one can raise the most motivated prospects possible.

Mortgage life insurance leads, however, are a very lucrative profit generator for any insurance agent. These kinds of leads are conditioned to be sold to the clients through various ways (one of the ways is on the net, as mentioned).

The second way to generate leads is through the process of direct mail. A few years ago the usual process to sell leads was to send thousands and thousands of direct mail solicitations for mortgage life insurance, and this process was common for all the leading companies offering such leads. But the process of direct mail incurred printing and mailing costs. With the advent of the World Wide Web, the main focus for generating life insurance leads has shifted to the Internet. However, an independent agent can still use the service of direct mail for the purpose of mortgage life insurance lead generation.

But there are a number of ways online lead generation is better. Sophisticated online account management systems and other software make it easy for clients to track the ideal lead that he or she needs. But be it through direct mail or email, constant persuasion is an important marketing tool.

Florida Mortgage Companies

There are a number of national mortgage companies with offices in Florida and a large number of local companies. To find the right company for you, start by asking family members and friends who live in the area you are interested in buying a home in about mortgage companies they recommend. Your financial institution may provide mortgage services, have a mortgage affiliate, or be able to advise you on reputable mortgage companies in the area.

Your mortgage company should offer you a range of services and products to ensure you find the mortgage that's right for you. If you don't find what you're looking for at one company, move on to the next. The more you shop around, the more you will learn what mortgage companies have to offer. Some may provide comprehensive services from start to finish, including affiliations with or in-house access to mortgage brokers and real estate agents. Others may offer only mortgage products and no add-on services. Most mortgage companies offer you first-time mortgage, mortgage refinancing, interest-only mortgage, and second mortgage options.

Before making up your mind, visit the companies you have short-listed to get a sense of how good they are at answering your questions. Avoid companies that seem eager to get you to sign a contract without explaining all their mortgage products, fees, terms, and rates to you. Mortgage companies are required by law to be transparent and non-predatory. If you aren't comfortable with a particular company, or think your questions are not being answered to your satisfaction, move on. Always verify for yourself that a company is reputable. Find out if you qualify for any fee waivers or discounts based on your credit history or an existing relationship with the company or one of its affiliates.

Florida Mortgages provides detailed information about Florida mortgages, Florida interest only mortgages, Florida mortgage brokers and more. Florida Mortgages is affiliated with Florida Refinance Mortgage Loans.

Florida Mortgage Information

Mortgage activity in Florida could potentially increase if real estates purchases continues to grow as experienced when comparing quarterly real estate purchase volumes in Florida in 2009 to quarterly purchase volumes in Florida in 2008. The Florida Association of Realtors reported a 44% increase in home sales volumes to 43,926 in the fourth quarter of 2009 from 30,610 in the fourth quarter of 2008 and a 93% increase in condominium sales volumes. Homebuyers looking to obtain a mortgage in Florida to purchase a property may find challenges that reflect many existing lenders tightening their requirements and many financing options that existed previously are no longer available.

Those homebuyers in Florida who take the time to understand the mortgage programs being offered could potentially better position themselves to obtain a home loan appropriate for their situation and at better competitive terms. Homebuyers, especially those purchasing a property for the first time, should understand the features associated with conventional versus fha loans, fixed interest rate mortgages versus adjustable mortgages, origination versus discounts, as well as other important aspects of the mortgage being considered. The more informed a homebuyer becomes, the better positioned the homebuyer could potentially become to obtain a mortgage with lower closing costs and a more attractive interest, terms and conditions.

Many lenders have tightened their mortgage guidelines in Florida to reflect the amount of foreclosures, delinquencies, and other situations faced in Florida over the last year. For example, different lenders may have different debt to income ratios required for a homebuyer looking to be approved for a mortgage to purchase a property. Homebuyers could potentially benefit from using a mortgage broker who can help them understand the various programs and options available for specific situations in Florida.

Key Leads is a Miami SEO and marketing company. Internal staff contributed to the development of this article. Key Leads provides marketing services to businesses throughout the US and Canada and can not directly assist with a Florida mortgage. However, we do recommend contacting a Florida mortgage company to obtain more information about financing your home.

Florida Mortgages 101

Do you want to know how mortgages in Florida work but do not know where to start? Do all those numbers and terms make your head spin? Then here are some basic information on mortgages to help you understand the process and what it entails. Remember that informed choices can get you the best in today's chaotic marketplace.

Mortgage rates

First off, you need to know how the banks and brokers in Florida determine a rate. This can be simplified by understanding the "Three C's equals Rate and LTV (Loan to Value)" equation.

The Three C's are:

Collateral. These are assets (a house, in the case of mortgages) pledged by a borrower to the lender. This is subject to seizure if the loan is not paid according to terms.

Capacity. This is the ability of the borrower to repay a debt that is determined by employment, income, credit history, and the like.

Credit. This is the borrower's borrowing capacity.

If your property or collateral is of great value, if you have good credit rating, and if you have the capability to pay, then securing a mortgage loan will not be a problem and you can look into being approved easily enough. If one of the three C's is questionable, then you will have to be subjected for approval.

Certain adjustments will be made and more conditions will be set, such as getting interest bumps. If more than two of your three C's are questionable, then you may have to get less than what you have bargained for.

Mortgage fees

You have to take note of the fees that you are required to pay when getting a mortgage. These are underwriting fees, broker fees, some insurance and title fees, and closing fees. You have to watch out for paying the broker's fees, though. If it exceeds over 1 percent of the loan amount, then that is already questionable. Be sure to be informed about the rates and how much of it is going to the broker and to the bank before proceeding. This is very critical in a mortgage transaction.

Florida Mortgages provides detailed information on Florida Mortgages, Florida Home Mortgages, Florida Interest Only Mortgages, Florida Mortgage Brokers and more. Florida Mortgages is affiliated with Florida Mortgage Interest Rates.