Mortgage Protection & Equity Protection
As a prospective home buyer, moving into your new home might seem exciting and exhilarating, but there are a few things to consider before making the decision. One such example is deciding whether to protect your mortgage with insurance.
When you opt for a 30-year loan plan to finance a home, the value of your home is likely to double within the first 15 years. At the same time, the mortgage payoff on your home will decrease by 40 to 50%. If you decide to sell off your property after 15 years, the difference between the selling price and your loan’s payoff will be your equity, or profit, on your home. In that instance, rather than covering the payoff, it would be more advantageous and financially intelligent to protect the equity itself.
Home equity protection plans from New Generations Financial are designed to do just that – provide you with a soft landing and ensure that you have a sizeable profit off your property in case you sell. This plan also ensures that your mortgage is protected and that you are safe from compounding interest rates.
Amortization or repayment periods of mortgage loans can extend over years, so there’s a strong chance that you’ll be paying off your debt for a long time. In the event of an accident, illness, or death, a related insurance policy on your loan protects your ability to pay off your mortgage in the same way other kinds of insurance protect the value of your assets from damage.
Are you considering discussing your alternatives, the pros, and cons of this plan? Contact our team today for further information.