Borrowers who are self-employed, underemployed, over age 50, retired, or in the military, may want to think about taking job loss insurance for their Arizona mortgage. With such high unemployment rates right now, no one’s job is totally secure. Job loss insurance is now being offered by a variety of lenders and new home builders.
Job loss mortgage insurance will pay all or a portion of your mortgage in the event you lose your job. Many times, the protection is available at no additional cost to the borrower or for a nominal fee. You should check with your Arizona mortgage broker to find out what insurance is available in the Phoenix or Scottsdale area for your mortgage.
All insurance policies have exclusions so read the policy coverage carefully so you understand the coverage level and when the coverage starts. Some policies only cover a portion of the payment. The job loss must be involuntary which means that you cannot quit your job, resign, retire, be fired for cause, be on maternity, sick or disability leave or take off excessive time for family emergencies. There may be a waiting period before the policy starts making payments to your lender. The insurance company wants to make sure that a borrower is not purchasing the insurance because they know they are getting laid off in the near future. Some plans are only offered to first time home buyers. Others are available to existing homeowners and some are available to any homeowner taking out a new mortgage.
Your Arizona mortgage broker can over all the policy benefits with you so you understand what is covered and what is not. Then you can decide if you need the insurance or not. Having the extra peace of mind is important to many people so this insurance has become popular given the current financial condition of the economy.
If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to firstname.lastname@example.org or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
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Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST