Mortgage Protection Insurance and What You Need to Know

Mortgage insurance fills the gap between the standard requirement of 20% down and an amount the borrower can more easily afford to put down on a purchase. Mortgage insurance is only needed if any one loan you have is for more than 80% of the value of your home. In This case you will be required by the bank to have PMI which will be discuss in further later. If a borrower has less than the 20% down payment needed to avoid a mortgage insurance requirement, they might be able to make use of a second mortgage (sometimes referred to as a "piggy-back loan") to make up the difference. Mortgage Protection Insurance is now considered a tax deduction.

Mortgage

Mortgage protection insurance is essentially a life insurance policy designed to pay off your mortgage in case something happens to you or your spouse. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. The average costs of mortgage insurance premiums vary, but typically they fall between one-half and one percent of the loan amount, depending on the size of the down payment and loan specifics. PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to homeownership. For non-conforming mortgages, the lender may designate mortgage loans as "high risk.

PMI

A new federal law, The Homeowner's Protection Act (HPA) of 1998, requires lenders or servicers to provide certain disclosures concerning PMI for loans secured by the consumer's primary residence obtained on or after July 29, 1999. PMI allows borrowers to obtain a mortgage without having to provide 20% down payment, by covering the lender for the added risk of a high loan-to-value (LTV) mortgage. PMI protects the lender if you default on the loan. The annual cost of PMI varies and is expressed in terms of the total loan value in most cases, depending on the loan term, loan type, proportion of the total home value that is financed, the coverage amount, and the frequency of premium payments (monthly, annual, or single).

There are Government loan products that also include a Mortgage Insurance Premium (MIP), essentially the government equivalent of PMI. If you are a homeowner, you will want to be aware of a new law that establishes rights for homeowners and rules for lenders regarding private mortgage insurance (PMI) cancellation. So, you don't like the idea of making those extra mortgage insurance payments. Without a doubt, private mortgage insurance has proven invaluable for families trying to attain the American dream of homeownership.

Alan provides information about Mortgage Protection Insurance through his website on Mortgage Disability Insurance

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Mortgage Protection Insurance Leads - The Great Secret to Annuity Sales

I have used this for years to find annuity prospects. For just a moment think about annuity sales and what comes to mind is the financial planner/estate planner/ certified senior advisor/ it just keeps going.

All those charts and new ways to explain how indexed annuities work and how much we all need to buy them. After awhile it becomes such a chore to compete with them and soon you will be looking for a simpler method to sell annuities. It seems to me the simpler method the better and I think most prospects feel the way I do…just show me the benefits and if it makes sense to me then I will buy the annuity.

I have a very simple method for making things simpler and to provide myself with virtually unlimited people to see….That method is the back door approach and here it is.

Mortgage protection insurance leads! You heard me right; they are a wonderful way to back door into an annuity sale. Just think about it for a minute. A new mortgage should be protected for the family in the event of death or disability. If the man is the bread winner and the stay at home spouse needs to be there for the sake of the family then what would happen if he died? How would she exist and keep the family together? Maybe she could return to work and maybe she couldn’t. Either way it is a perceived need and almost everyone wants to be protected. Mortgage protection insurance is a simple sale and if you are smart…can lead to an annuity sale.

Here is how I do it. After my needs presentation I always ask a few questions such as:
• How long have you been at your current job? (potential 401 k rollover)

• Do you own life insurance? (potential conversion or possible combination with the mortgage protection policy)

• Do you own an IRA? (possible annuity sale)

• Do you own an annuity? (possible rollover, 1035)

• Do you own mutual funds? (possible annuity sales)

The list can go on and on. There is a secret about mortgage protection insurance and it is this….most people do not think of it as life insurance!. It is considered a need for family survival because we all need a house that is ours and nothing feels better than not having a mortgage….it is the basic safe harbor instinct.

Use direct mail and cover an area for leads. A return of 1-2% is successful, make the appointment and do the mortgage protection pitch and then turn the process into a fact finder and a two call close. No other mortgage protection insurance salespeople are doing it and it makes you stand out. Plus you will be accumulating clients instead of policies. It is how you build a business and a profession instead of always needing the next sale.

Be a professional and not an amateur by doing something everyone else will not do. Plus regardless of how you are currently selling nothing makes you sharper or helps you think on your feet more than 5-6 appointments a day.

It is a very easy sale and it is one that no one is doing.

Bill Broich is thirty year annuity salesman who helps agents generate leads and sales. To discover more visit his website: Annuity Leads

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Mortgage Payment Protection a Very Valuable Form of Protection

If you have not got any form of a plan to fall back on if you lose your income then life can become extremely hard. At a time when you need to have your concentration on your health and making a recovery you would be worrying about where you would find the money to continue meeting the requirements of your mortgage. If unemployed you would also have this worry while looking around for work. Mortgage payment protection would ease both of these worries by supplying you with an income.

You would only have to wait for so long when becoming unemployed or being incapacitated before you would be able to claim on your payment protection. This is between the 30th day and the 90th and then the policy continues to payout for between 12 and 24 months determined by the provider's conditions. This would allow you plenty of time to get back on your feet again and back to earning a living. It is worth checking in the terms and conditions of any policy you are considering taking out to see if the provider backdates to the first day of incapacity or unemployment as dome will.

Continuing with your mortgage repayments is imperative as just one missed payment would cause problems. At the least it would stain your credit file and this is the first thing that all lenders take into account when you apply for any form of credit. Your credit file can take many years to get back to where it was. In the worst case if you cannot come to an agreement with the lender you could be repossessed through the courts. In just a few months from losing your income and not being able to keep up with the repayments of your mortgage you could be evicted and lose everything.

Mortgage payment protection does not have to be expensive if you choose to take it out independently. There are specialists who offer payment protection policies and these offer the cheapest premiums. In some cases you could secure a policy to protect the roof over your head and make savings of as much as 40%. The advantage of choosing your protection this way besides saving money is that you have all the information to hand via their website. This is what is needed for you to determine if you would be eligible and the level of protection which would suit you better.

You can choose the level of cover required for mortgage payment protection, if you do not need to insure for accident, sickness and unemployment together then you can just choose a policy for unemployment or incapacity only. How much you pay will also be determined by age with some providers. This means that protecting your mortgage is now much more affordable for even the younger generation who sometimes take on huge mortgages which push their budget to the limit. It would also be determined by how much of your mortgage repayment you wished to cover each month. All payment protection specialists will allow you to protect up to so much of your total mortgage repayment.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of mortgage payment protection.

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Mortgage Protection Policies

Regardless of the volume of information you are getting, one thing that you do need to pay attention to is whether you should take out a mortgage protection insurance policy or not. It is, indeed, an extra cost on top of what can already be very expensive. On the other hand, it is a potentially important addition to your mortgage that you should pay much more attention to.

If you're still unsure as to whether or not you need to take out a mortgage protection policy, think of the 25 years or so ahead of you. You may have unforeseen events happen to you that mortgage protection insurance will be very helpful with. Let's have a look at what mortgage protection insurance is and what it can do for you.

What Is a Mortgage Protection Policy?

A mortgage protection policy is an insurance policy that protects your home mortgage payments if you should happen to have financial hardship, whether it's because of illness or accident, or loss of a job. Mortgage protection insurance pays your monthly payment on your house in the event any of these things happen to you.

What policy should you get? It depends on what payments you want made for you and how long you want and need them. Normally, you can rely on a mortgage protection policy's coverage for 12 months, although this is dependent on both the policy and on your circumstances.

The types of cover available to you are:

• Cover for unemployment and incapacity: This gives you the fullest protection available and covers illness and accident, as well as loss of your job.


• Cover for just unemployment: This type of cover will only cover you in the event you lose your job.


• Cover for just incapacity: This type of cover will just cover you for illness or accident that prevents you from working.

Why Should You Have a Mortgage Protection Policy?

You can't predict the future, especially 25 years ahead. This is the average length of a mortgage available in the UK today. You can have an illness or a major accident; in addition, as we know, there is no such thing as "lifetime employment" anymore, so it's much more likely today that you can lose your job on short notice. This makes mortgage protection insurance even more important. The next important decision you have to make is to decide which type you want. Unless you are self-employed, it's the most prudent choice to go with a policy covering both unemployment and incapacity.

Free MPPI Information

You find out about UK Mortgage Protection Policies by contacting British Insurance Ltd at their web site.
In addition, online MPPI applications can be made at http://www.uk-mortgage-protection.com.

Choosing the right Mortgage Payment Protection Insurance is not difficult, but it is best to be armed with the correct facts. If you would like to learn more about MPPI, then there are 3 ebooks that you can download for free. The books are:

1. A guide to age related mortgage payment protection insurance
2. What to do when you can't meet your mortgage payments
3. ASU a guide to accident sickness and unemployment

In today's unstable employment world, mortgage payment protection is an insurance you should consider to be a necessity, not a luxury.

You can download these free ebooks here.

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Mortgage Protection Insurance Leads... Easy Sales, But Are They Profitable?

Is there an easier sale than the mortgage protection sale? I don’t think so and the reason is because of the perceived need on the part of the prospect. The prospect knows the amount of the mortgage and it becomes a need that needs to be protected. It is just as simple as that, perceived need.

As an agent I want to gather all the clients I can without out burdening myself with huge service issues and the mortgage market provides just such a opportunity.

As a business person if I were to assess the dynamics of the mortgage protection market it would appear to a mistake because the amount of compensation is low. If it were only based on that factor I would have to agree. A significant amount of work goes in to the mortgage protection sale all the way from the lead generation to the overhead costs to the general cost of being in business. So what is the reason for this type of sale? Why would I want to work in this market? It is not for the mortgage protection sale, it is for the ancillary sale.

Once a prospect has and understands a perceived need then the opportunity exists for an expansion of the relationship. It can be expanded into many other segments of their financial world.

The difficulty lies in how to expand the relationship and that is where the art meets the salesmanship. To be different than other agents requires you to think differently. Thinking differently means thinking beyond the transaction sale, thinking of the relationship not as a transaction but as an evolution to a client/counselor relationship. The tool of choice is a fact fining process that expands your understanding of the client’s needs and goals. Any solid fact finder will help you understand how a client feels and how your products can increase the quality of their life.

Transactions are extremely limiting and are very unproductive for the professional salesperson. The opposite is true; relationship sales will provide a greater opportunity to enjoy future sales and to grow a list of quality referrals.

Bill Broich is thirty year annuity salesman who helps agents generate leads and sales. To discover more visit his website: Mortgage Protection Insurance Leads

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