- Different types of
- Who benefits from coverage?
- Is mortgage insurance right for me?
- Other options to mortgage insurance
My wife and I are 62 and retired. We have a mortgage of $195,000. Should we purchase mortgage insurance?
My wife and I are 62 and retired. We have a mortgage of $195,000. Should we purchase mortgage insurance?
The term "Mortgage Insurance" can refer to several different insurance products. For instance, some lenders require borrowers to purchase the kind of mortgage insurance that insures the lender against potential losses incurred in the event the borrower defaults on the loan. Such insurance does nothing to help a borrower who falls behind on their payments.
I am guessing that you are inquiring about mortgage payment insurance, such as mortgage disability insurance and mortgage life insurance, which are insurance plans that may pay a homeowner's monthly mortgage payment in certain situations, typically involving the disability or death of the mortgage holder.
Such insurance can be costly and some people find their money better spent in other ways, like investing or saving to create a "rainy day" fund to provide a cushion should a disability or death of a spouse render them unable to pay their mortgage.
I would recommend that you consult with a qualified financial planner to determine the best option available for your specific financial situation.
That said, when looking at such insurance plans, always read the fine print. Many plans have exclusions for things like pre-existing conditions, as well as limits to when and how long the plan will cover your payments. Be sure the plan actually covers the specific kinds of situations that you are concerned about.
Then calculate the cost of the plan and research other financial strategies to determine which one delivers the most useful protection.
Navigating retirement can be tricky, so again, I want to recommend that you seek advice from a qualified financial planner as you seek the best solution for your financial needs.
I wish you the best of luck, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
The mortgage market: what's new?
No surprise that mortgage rates fluctuate. If you are thinking about purchasing a home or maybe considering refinancing your current mortgage, then you want to be up to date on mortgage rates.
Mortgage rates November 1, 2023
According to Freddie Mac, the 30-year mortgage rate for the week of November 1, 2023 stands at 7.76%. This 3 basis points decrease from the previous week's rate.
Additionally, Freddie Mac reports that the 15-year mortgage rate for November 1, 2023 is 7.03%, indicating a 0 basis points - no change - from previous week’s rates.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for November 2, 2023 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- For a 30-year conventional loan, the interest rate is 7.70%.
- If you opt for a 15-year conventional loan, the interest rate stands at 6.84%.
Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,990. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,484.
Explore your options and secure pre-approval today!
To make your life easier, we highly recommend shopping around for mortgages and getting pre-approved. This will streamline the home-buying or refinancing process and make it a breeze. Ready to get started? Check Out mortgage rates now for the best options available.
