Knowing you have to pay back your mortgage over a period of 25 years may leave you restless until you get used to the idea. The thought of your house being repossessed due to defaulted payments may even keep you awake at night. Why should you torture yourself? Get some sleep! Get Mortgage Payment Protection Insurance.
So What Exactly is Mortgage Payment Protection Insurance (MPPI)?
Mortgage Payment Protection Insurance reimburses you in cases where you cannot make one or several Mortgage monthly payments. This sounds great but, needless to say, is limited to the terms and conditions.
MPPI will pay your mortgage payments if you lose your job resulting in involuntarily unemployment, illness or an accident that prevents you from working or in case of death. There are other situations where MPPI will reimburse the borrower however; the ones stated here are the most comment ones.
My Health Plan Covers Me from any Loss That Results from Health Issues I Don’t Need MPPI Then, Do I?
In most cases you won’t need MPPI if your health insurance plan reimburses you with any loss that might arise from illness or accidents, however, make sure to check your policy and verify all the conditions including Mortgage, by reading the fine print or calling up your agent.
If your health insurance or other type of insurance covers your assets from any loss make try to see if Mortgage Payment Protection Insurance will add any value. If you find that MPPI adds value, negotiate a discount with the lender or insurer by omitting the coverage a different insurance policy takes care of.
Shopping Around for the Best MPPI Offer
You don’t have to rush into it right away when getting a mortgage, but, when you feel the time is right and you know you are eligible for a MPPI get the best offer possible by comparing offers online. You might want not to work with your mortgage lender. In fact, you might even find an insurance company offering you a great Mortgage Payment Protection Insurance offer.
When you find yourself fed up with creditors calling you and tired of being in debt a debt consolidation loan might be a good way to find relief, if done correctly. Bad credit is an issue as well since you are behind payments and want to get it over with. If you do proper research you will see that in a few years you will debt free, meaning you won’t have any debts to pay off and the money you earn will be only for you. You have managed to eliminate debt and are not labeled as bad credit!
Unsecured or Secured Debt Consolidation Loan, Which is best?
You will receive the best rates from a secured debt consolidation loan. You must own an asset such as a home which will secure the lender with collateral in case you can’t pay back the borrowed money. Being labeled as bad credit this type of consolidation loan will help due to the lower rates when you need them most. Be sure to calculate your monthly expenses and don’t spend money on things you don’t really require.
If you don’t own an asset your next best option is an unsecured loan. Rates are higher than secured debt consolidation loan rates, but, considering the debt relief you might find this type of loan useful. With bad credit you might find it difficult to find lenders that will lend you money. Therefore, the internet is a great place to seek for them. Online lenders are aware to the fact that a lot of people are in debt and do not own any assets and since they want to capitalize on this market they are willing to take the chances.
How Does Consolidating Debts Help Improve Credit Ratings?
You were labeled as bad credit because you failed to make certain payments on time. This also led to you being in debt. When you have the money to pay off all your debts at once, and manage to make payments on time your credit score will boost. A debt consolidation loan does just that! When paying off debts it is wise to pay the highest interest first.