Mortgage Protection
For many families, their home represents their largest investment—both financially and emotionally. For that reason, families often want their survivors to have the option of remaining in their own home, if they wish. Having that option usually means providing sufficient funds to redeem the mortgage.
The prospect’s mortgage fund usually equals the current outstanding mortgage loan principal balance. If the prospect does not know the outstanding principal balance, just look at the annual mortgage recap that the mortgagee provides.
For prospects who rent their homes, that same option—to stay in one’s home—can usually be provided by establishing a rent fund equal to 120 times the current monthly rent.
Whether it’s best to actually redeem the mortgage or to just make the mortgage payments as they come due usually depends on the economics of the transaction at the time of death. The important point is to give the survivors the option of staying in their own home.
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The prospect’s mortgage fund usually equals the current outstanding mortgage loan principal balance. If the prospect does not know the outstanding principal balance, just look at the annual mortgage recap that the mortgagee provides.
For prospects who rent their homes, that same option—to stay in one’s home—can usually be provided by establishing a rent fund equal to 120 times the current monthly rent.
Whether it’s best to actually redeem the mortgage or to just make the mortgage payments as they come due usually depends on the economics of the transaction at the time of death. The important point is to give the survivors the option of staying in their own home.
Request a Free Quote
