Monthly Archives: July 2017

Getting Mortgage Protection Insurance for Your Investment Loans

No matter how you look at it, a home loan is a serious and scary investment. It involves a lot of thinking, time and most especially money. Having said that, it would be logical for anyone to do everything in their power to make sure that they don’t screw their opportunity to find the best mortgage products in the market. Still, there are some unavoidable circumstances that could hamper our efforts to secure our mortgage as well as our financial circumstance. A sudden illness or accident can lead to problems when it comes to making ends meet. So how can we protect ourselves from the possible financial disasters that could stem from such instances?

The answer is mortgage protection insurance. Because our investment loans and other financial assets require security, it is advisable to purchase coverage. Typically, mortgage protection insurance is offered to home owners once the home loan application is secured. The purpose of mortgage protection insurance is to protect the home owner from financial loss. There are lenders who actually make this a requirement

The process is simple. You will be asked to pay a monthly premium for the coverage. Let’s say for example that you succumb to an illness and die, the insurance company will pay your death benefits. So if you notice, mortgage protection insurance is a little more like a life insurance. However, you must be aware of the different policies implemented by your insurance provider.

As time passed, mortgage protection insurance saw some changes to it. Mortgage insurance providers in the past simply had to pay the remaining balance of the mortgage. But today, there are some mortgage insurance companies that provide coverage for the full amount of the loan. What this means for the family is that they will be paid the full amount of the mortgage regardless of how much have already been paid to the lender. If your mortgage amount is $500,000 and you’ve managed to pay up to 60% of the loan, you’d still be able to receive $500,000 from your insurance coverage. The insurance provider will give the money to the deceased’s family without imposing any condition.

The death benefits will be very useful to surviving family, which would have been seriously hit financially. Not only do they get to pay the remaining balance of their mortgage and secure their home, they also get additional money which can be used for other purposes like sending children to school, starting a business, or renovating the house.

Mortgage protection insurance is one of the best ways to ensure that your investment loans will not be put to waste. Not only does it protect your property against possible foreclosure, it will also safeguard the financial future of your family.

3 Tips to Getting the Best Investment Property Loan Ever

Getting investment property loans isn’t actually like getting a regular mortgage. It involves more procedures in the process as well as additional money. For those of you who don’t know what an investment property is, it’s a property that you use for the sole reason of investing and not for yourself as a residence. These properties are purchased by investors to make a gain which basically comes from renting them. For many of you who still underestimate the power of investment properties, it might seem that paying the loan needs years and years of renting. However, with the right planning and actions, your return on investment will be much rewarding than many other business ventures. If you’re seriously considering getting an investment property loan, here are 3 tips to help you smoothen up the process:

1- The better your credit history is, the faster you’re going to get your loan:

The first thing lenders look at when reviewing your application for approval is probably your credit history. They need to make sure that their investment is safe before they can approve your loan. If you’re considering getting a loan and you happen to have a bad credit score, you might want to work on that first, and then apply once it’s on the right path again.

2- Investigate:

Many people think that all lenders offer the same options, so there is no need actually to bother checking with many. However, I can tell you that if you don’t make the proper research, you could end up struggling with your bad lender for the rest of your loan period agreement. Different lenders offer different options from interest rates, down payments, loan value and payment time, so you need to make sure that all their terms meet your requirements. Once you’re with a lender which you’re comfortable with all their terms, you can then search for the right property for you.

3- Forget about the “do it yourself” concept:

Most investors that get their first loan aren’t actually experts in the real estate business. While the vast majority hire experts to do the job that requires expertise, some of them prefer to play solo by not investing any money into the process of getting a good home. There are some stubborn people who read some articles and then try to do inspections themselves, but most of them will eventually end up with a seriously damaged property which no one wants to rent or buy. If you want to get the best out of your loan, you need to invest some money into good agents who will make sure that you get the best property that your loan can buy.