If you are like most people, your home and mortgage is both your greatest asset and your biggest financial commitment. And if for some reason you find that you are unable to meet your monthly repayments, it could turn into your biggest nightmare. Without some form of Austin mortgage loans protection, the worst case is that you end up losing your family home.
For most people, the government provides little help. People whose mortgages were taken in or after October 1995 must wait 39 weeks before they are entitled to receive financial assistance from the government. Even after that, the government pays only your interest, leaving the main part of your payments unpaid. If yours is relatively new, you may be able to get away with that, as classic repayments are front-loaded with interest, but you still have to wait nine months before you even qualify.
This is not the only problem, though. Once you qualify, the Income Support for Government Mortgage Interest (IMSI) payments are calculated using a “standard” rate of interest that is much lower than the speed at which most people get them. Provide. Unfortunately, there is another question. People with a mortgage of over $ 100,000 experience additional problems, because the payments do cover IMSI’s interest on the first $ 100,000 of any Austin mortgage loans. But there is worse, however – IMSI claims are also conditionally conditional. If a partner works more than 24 hours a week, or has savings of more than $ 8000, you are not entitled to claim payments at all. Given all that,
Creating your own safety net is the best option
Relying on the help of the government does not provide much help in protecting your mortgage, so you will need to study other options if you want to the assurance of knowing that your repayments will be supported in the event that you are unable to take care of themselves.
If you opt for a protection plan that covers your repayments rather than paying your mortgage in full, you have two options. The first is the Unemployment, Sickness and Accident Insurance (USA), also known as Mortgage Protection Payment Insurance (MPPI). If you lost your job or are not capable to work due to an accident or illness, an MPPI plan, that it will be paid, as well as associated costs such as home insurance, for up to twelve months . The disadvantage is that you are not covered for pre-existing diseases, but one advantage of this option is that you can buy one or two types of coverage separately if you wish.
A mortgage payment protection plan that covers you in the event of unemployment may, for example, be used in conjunction with a second type of plan provided for income protection. This coverage plan covers you in the event of an accident or illness that prevents you from working, and rather than only providing you with enough money to cover monthly payments, you can opt for coverage that includes a larger amount monthly to cover additional expenses. These monthly amounts are tax-free, and are paid until you are able to work again, or even until you reach retirement age.
As with any financial plan that is designed to support you and your family should strike hard times, if you do not know what coverage or policy is best for you, take advice from an independent advisor. Do not just accept the policy first offered to you by your Austin mortgage loans lender as many of these policies have been heavily criticized recently….