Mortgage Insurance Vs Life Insurance

People often see their homes as their biggest investment, and naturally they want to protect that investment. On the other hand, people also worry about what would happen to their loved ones if they were no longer around to care for them. For both of these situations, there is life insurance and mortgage insurance. Both types of insurance offer benefits, but they differ in their nature and eligibility criteria. If you are considering one or both forms of insurance, here are some things that you need to be aware of before making a decision.

Life Insurance

Life insurance is a smart move for many people who have dependents. However, life insurance does not often come without a rigorous application process. Age is a critical factor in the monthly premium you pay and you often have to undergo a medical exam. If you have had any previous complications, then that could work against you. In short, the younger and healthier you are, the better your chances of getting a good premium. However, for those who don’t qualify for life insurance but still want to protect their assets, they have to look at other options.

Mortgage Insurance

Mortgage insurance is usually offered by the same lender providing you with the mortgage. This form of insurance covers your monthly mortgage payments in case you can‘t pay them with your regular income. While mortgage insurance is much easier to secure than life insurance, there is a higher cost. Also, while the premiums don’t change as time goes by, the benefits are reduced as you pay down your mortgage. If you have trouble qualifying for life insurance but still want some form of protection, then mortgage insurance might be a more practical option. However, if you change your lender, your policy will also change.

Which Is Better?

Choosing between mortgage insurance and life insurance depends on your situation. If you know that you may not qualify for life insurance then mortgage insurance may be the next best thing. That said, there are many life insurance plans that offer flexibility and require little medical examination (often just a short questionnaire). So it is best to fully explore your options.

At Northwood Mortgage, our agents can help you find the best solution for your needs. Contact us today for a free consultation and let us see how we can help you protect your assets and your loved ones.

source: northwoodmortgage.com

Is Lending A Good Idea

Every now and then, someone decides it’s a good idea to ask you to borrow your car. Now, in the goodness of your own heart, you may feel it is necessary to be a great human being and lend them. A car is not a t-shirt, a dvd or a power drill. A car is a serious piece of equipment, and you as the owner, are liable for what happens to it, and because of it. Feeling the pressure to lend the car you own maybe high, but put your foot down, check out our checklist and make your lending decisions accordingly:

No matter how much they beg and plead and promise to bring it right back, if your teen wants to go somewhere – you make sure to do the driving and not them. In some domestic cultures, parents let their kids learn to drive in a very hands-on way. They will teach them how to drive, and then let them use to car to do various runs, usually within the town or neighborhood. It may seem harmless enough, but it just takes one accident, one missed light, one tiny distraction, and things can go horribly awry. A case on the ever popular Judge Judy show in 2011 exemplified this perfectly. A mother taught her son (14) to drive, and allowed him to go joy riding in the area and on their property. One day, they had visitors over, who came with a daughter the son’s age. In an effort to impress her, the son invited the daughter to go joy riding with him on the family’s property. He apparently was speeding and lost control of the car on the family property, totaling the vehicle, and killing that visitors’ daughter. Don’t let anyone drive your car who isn’t of age and licensed.



Family members love to lean on each other in times of need. And in some dynamics, nothing is wrong with that at all.  Just need to borrow the car to head to the store and back? That shouldn’t be a problem. But if you have a brother or sister or cousin who wants to borrow your car from more than just a grocery run, it may be time to ask some hard questions. One such hard question is “Why aren’t you driving your own car?” If someone has demerits or a suspended license, they aren’t supposed to be driving at all. Not their car, not your car, not anyone’s car. Does this person drive responsibly? Can you put your head on a block ad say that this person is respectful of the laws of the road? While it may be fiscally easier for them to borrow your car instead of renting, in the event of an accident, you’re the one stuck with the bills. Love your family, but love yourself enough to know when to say no.

Permissive user coverage, allows you to list certain qualified and approved people to use your car and benefit from the car insurance coverage that you’ve grown to rely on. While you may say no to a few people who want to get behind your wheel, chances are, you may already be allowing other people, regularly. Once they don’t own your car, and they use it more than twice a week, it’s time to put them on the list – trust us, it’s for your own good.

source: insurancequotesfast.com