Three things I feel very confident is; the sun will rise, the government wants taxes and if you buy a home you’ll be solicited to buy Mortgage Creditor Protection sometimes known as Mortgage Life Insurance. This is not the same as PMI or Private Mortgage Insurance, which is a legitimate part of a mortgage.
Mortgage Creditor Protection is a financial product which declines in value as the borrower pays more premium to the insurer. Mortgage Creditor Protection promises to pay out an amount equal to the client’s outstanding mortgage debt at any point in time which is a decreasing sum.
Therefore, Mortgage Life Insurance is extremely profitable for lenders and insurers and equally as disadvantage to borrowers. Don’t be a sucker. Mortgage Creditor Protection is a dirty secret of the mortgage industry and shame on any company that offers this product.