Mortgage loans have become a phenomenon in 2016 this year. Until recently, the still falling interest rate has simply made its own. People were aware that they could currently reach relatively low monthly repayments, so those who did not even intend to do so have decided on debt.
It should be noted, of course, that this ideal low-interest condition may not last forever. For years to decades, there will be a change that can surprise your family budget. He also weakens the various unpredictable life situations.
That’s why mortgage insurance is here. This is even mandatory for most banking institutions, whether you enter it directly in a banking institution or you prefer another insurance company.
Why do you insure your mortgage?
The answer to this question has been largely discussed at the beginning of this article. Protection against the inability to repay its obligations in different life situations. Banks undoubtedly offer any variants covering common things to the most risky cases.
Bank house offers are quite similar in this respect and insurance options include the following.
- Long-term incapacity for work
- Involuntary job loss
- Disability III. degree
How does the mortgage itself affect insurance?
It is understandable that if you arrange the appropriate type of mortgage insurance, you open the imaginary door to better interest rates. It is a relief that you will be given additional charges for the mortgage, which will increase with the size of your mortgage loan.
Most applicants will take out insurance directly at the bank, just at the time of approving the application.
Will the bank really help you in difficult life situations?
The question, which most of the clients of bank houses unfortunately do not intend. Everyone has the certainty that he has insured for the situation, and if the bank is there, he is waiting for help from the bank. But sometimes they approach customers quite strangely.
In this regard, it pays to consistently read the terms and conditions of mortgage insurance, including boring paragraphs in small print, where information can be incorporated when you really benefit.
It may happen that the bank will pay you the installment for you, but with a certain delay or just a few months in a row. And then there may be an unpleasant disillusionment when you think you have enough time to get a new job.
Financial reserve and life insurance
If you want to be truly confident and do not want to rely solely on mortgage insurance, pay attention to other products on the market, such as life insurance. In addition, you should have a financial reserve of at least six monthly salaries to cover a number of unexpected expenses.