Mortgage insurance: Mortgage Payment Protection Insurance

In the event that you lose your job, the state would help you with your financial commitments. However that was a few years ago and things have changed quite a bit since. Within the current uncertainty, it is a good option to take out a mortgage payment protection insurance policy in order to ensure your payments are met, even if you unfortunately lose your job.

State assistance in the event a borrower is unemployed usually covers only the interest payments and not the capitol. Should your mortgage value exceed $100,000, you are not eligible for state assistance. Statistics state that only 1 in 5 mortgage payments have this kind of protection policy. However, the government is also taking steps to make mortgage payment protection insurance compulsory for all borrowers. Payments for this type of policy usually starts 30 or 60 days after you start paying your mortgages and come in twelve month and twenty four month plans.

Generally the cost of mortgage payment protection insurance is around $4.50 for every $100 of monthly payments. Some policies go as high as $7 for every $100 of monthly payments. However these higher priced policies provide you with many other value added services that may become useful. Therefore, you should conduct some research in to the policies and what they offer before you take out a policy and make sure it is ideally suited for you and your mortgage plan.