Mortgage Life Insurance: Peace Of Mind In A Terrible Time

Death is not something that people want to think about, but it is a reality that faces us all at some time. A lot of business is left behind when one dies and does not take care of their affairs ahead of time. Mortgage life insurance can keep one of those worries off the table for you. It pays off the balance of your mortgage if you die.

The major upside to mortgage life insurance is that it takes care of this major expense in the event of your death, and that means that those who are left behind can have a little less to worry about in their time of grief. One must weigh the pros and cons of purchasing the insurance and the benefits it provides against the premiums that must be paid.

Merged Credit Report

Merged credit reports are particularly common in mortgage lending. Because there are three major credit reporting bureaus, it’s possible that pulling a report from only one or two of these companies may not show a complete picture of your financial situation. By utilizing a merged or tri-merge credit report, mortgage lenders can access all of the financial information you have on file which helps the lending bank to decide the specific terms of your home loan or whether to even offer you a loan at all. This merged credit report can be obtained from any of the three major credit bureaus and will only contain the same information that is already shown on at least one of your credit reports with Experian, Equifax or TransUnion.

Explaining Loan Origination Fees

Lenders occasionally charge an origination fee as a way to compensate themselves for generating the loan itself. Not only is this done as a way to cover their own expenses related to creating the loan, but it is extra money for them on a loan that may be potentially risky. In other words, it is a way to add extra interest on the loan itself.

Most loans that do include an origination fee in the United States range between 0.5% to 1% of the total principle of the loan. This is a big way that the lender collects money for the work that they put into a loan on the front end. They will also be compensated via the interest payments over the life of the loan, but this is a great way for them to capitalize on some return immediately.