     Don Semler (Dsemler) | Thursday, July 27, 2000 - 06:55 pm 
Try contacting countrywide and see if they offer a credit life policy. Most lender do. If so this may help cover the cost of the loan if she were to die. Otherwise the only other option would be to try and get a term policy on your mom, but it might be too expensive. Talk to the people that have the homeowners insurance on the property. As for gettign you off the title, that's easy. You can deed you interest to you mom. However, that will not release you from the mortgage obligation. The only way to get you off the loan is to have your mother refinance whcih she might not be able to do so you would then be stuck.
My suggestion would be to check in the the credit life policy and term policy. If these are too costly then do nothing. If you mother passes, you can always sell the home if you can not afford the payments. |
| John Shimmer (Jshimmer) | Friday, July 28, 2000 - 05:54 am
I just spoke with my insurance agent the other day (my wife had returned something they sent, asking for more info on mortgage protection insurance). Basically, he told me that it would be better to get a term life policy instead. With any type of mortgage insurance (the credit life type), you're limiting yourself to being able to pay off the home in the event of a death and nothing more. With term life and other options, you can pay off the home, or pay off part of it and use some of it for something else, or pay nothing on it at all - it's all your option. Plus, with the credit life mortgage insurance, your coverage basically goes DOWN each year because you owe less and less on the home. If she lives another 20 years, you're only going to get 50 grand (whatever the balance of the mortgage is), when you'd be getting 200K or whatever amount a term life policy pays.
Personally, I'd stay away from any policy that dictates where you have to spend the money and where it's benefit amount goes DOWN every month that YOU make YOUR house payment. |
