As interest rates hit a record low, many Americans are taking advantage of this window of opportunity to refinance their home mortgages and save money. According to a Freddie Mac report, the average rate on a 30-year fixed mortgage dropped from 3.31% – a record low set in November of 2012 – to 3.29% in early March, a figure that many may never see again in their lifetimes.
This historic drop in interest rates now makes it possible for some 13 million Americans to save a great deal of money over the life of their home mortgage by refinancing their home loans. Interest rates on many current loans could drop as much as 75 basis points, according to a report published by Black Knight, a leading independent mortgage data and analytics company.
This means that there’s no better time than the present to refinance your home mortgage to alleviate financial pressures and plan a brighter future for your family. In fact, solicitations for refinancing have reached levels that have not been seen since 2009, rising at a rate of about 79% weekly, which represents the largest increase in refinancing applications in over 10 years.
How can I protect my home and family in uncertain times?
While refinancing your home mortgage is a smart move when it comes to saving money, there is still the problem of making sure that every mortgage payment is made on time, in order to maintain those great new interest rates and ensure that your family and home are protected from unforeseen circumstances. Given the current volatility of the national economy, even if you do refinance, there is no guarantee that you will remain fully able to produce enough income to make full mortgage payments monthly.
If you are like most Americans, your home is probably the most expensive, important, and essential asset that you own, and one that demands a sizeable percentage of your income every month. This naturally raises the question of what would happen if you were unable to produce that income every month.
Who would pay your mortgage payments in the event of a tragedy, injury, illness, or unexpected loss of income?
Would your family be able to continue making the monthly mortgage payments on time, in order to keep the family home if you were to lose your income?
If you worry about a scenario such as this one, mortgage protection insurance can provide protection and peace of mind for you and your loved ones.
How does mortgage protection insurance work?
Mortgage protection insurance essentially protects you and your family in the event that the family could not make regular mortgage payments due to a death or critical illness diagnosis of a primary breadwinner. Mortgage protection insurance would provide your chosen beneficiary with a sum of payments equivalent to the cost of the mortgage. This ensures that your family can remain in their home without worrying about how to pay each month’s mortgage payment.
In order to make your mortgage protection coverage even more comprehensive, you may choose to add on policy riders that cover specific circumstances. Riders can modify the policy so it kicks in if you should be injured, disabled or diagnosed with a serious illness that prevented you from making your monthly mortgage payments. These riders typically cost a bit extra, but extra layers of protection on your policy can further benefit your loved ones in various types of scenarios.
How can I purchase mortgage protection insurance?
The first step to take is to contact a Symmetry Financial Group agent in your area. Symmetry Financial Group, the nation’s leader in insurance marketing, provides a broad selection of insurance products sourced from 30 of the nation’s top insurance carriers. A Symmetry Financial Group agent can help you to select the perfect mortgage protection policy for you, based on your needs, lifestyle, budget, and financial goals.
Mortgage protection insurance is among the easiest types of insurance to purchase because it is easy to qualify for, with one of the highest acceptance rates across all insurance carriers. Rates for mortgage protection insurance are typically based on your home’s market value and the policy payoff amount, but will also take into account such factors as your age and overall health status at the time you submit your application for coverage.
While rates for mortgage protection insurance may be slightly higher for older adults, it is still possible to qualify for this protection later in life. Additionally, most mortgage protection plans come with simplified underwriting, which means that the majority of applicants will not be required to undergo a medical exam in order to qualify for coverage. Even for individuals with pre-existing financial conditions that would render them ineligible for other types of life insurance, mortgage protection insurance may be an option thanks to the simplified underwriting process associated with this type of policy, which makes it accessible to more people.
Mortgage protection with refinancing
If you have already purchased mortgage protection insurance and you do decide to refinance your mortgage, your policy will have to be modified based on the terms of your new mortgage agreement. In this case, you should update your policy and coverage to reflect your new mortgage amount and possible adjustments to the value of your home if it has changed since the original policy.
If you are the head of household or your family’s primary provider, it is essential that you update your mortgage protection policy at the time of refinancing to ensure that your family is protected in the event that you become incapable of making the mortgage payments at any time in the future. To update your current policy, contact your Symmetry Financial Group agent. They will help you to review your current coverage and make the necessary modifications to update your policy.
At Symmetry Financial Group, knowledgeable agents are able to shop around on your behalf in order to find the most suitable policy that best fits your specific budget, lifestyle, and goals. And the best thing is that you can purchase or modify a life insurance plan from the comfort of your own home! Symmetry Financial Group offers video conference policy reviews, making it easier than ever before to purchase mortgage protection insurance and peace of mind.
To learn more about how mortgage protection coverage can protect your home and family from circumstances that could prevent you from making those essential mortgage payments every month, contact a Symmetry Financial Group agent in your area today!
By filling out this short form, you will be connected with an agent in your area that can help you select the most suitable mortgage protection policy to protect your home and family.