Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: $Revision: 1.6.2.16 $; site ima.UUCP Path: utzoo!linus!philabs!cmcl2!harvard!think!ima!johnl From: johnl@ima.UUCP Newsgroups: net.invest Subject: Re: On the Worth of Mortgage Insurance Message-ID: <109000011@ima.UUCP> Date: Thu, 7-Nov-85 22:00:00 EST Article-I.D.: ima.109000011 Posted: Thu Nov 7 22:00:00 1985 Date-Received: Sat, 9-Nov-85 06:31:19 EST References: <1137@decwrl.UUCP> Lines: 20 Nf-ID: #R:decwrl:-113700:ima:109000011:000:1055 Nf-From: ima!johnl Nov 7 22:00:00 1985 /* Written 2:39 pm Nov 6, 1985 by traite@wanginst in ima:net.invest */ > I don't have a house or a mortgage, but from the discussion on net, it > seems that mortage insurance will only pay the balance of the mortgage due > to the holder of the mortgage, AFTER ASSETS, OF THE MORTGAGE TAKER, I.E > THE HOUSE, HAVE BEEN EXHAUSTED (SOLD). No, mortgage insurance pays off the balance of the mortgage so that the bereaved survivors don't have the extra misery of being kicked out of their house. But as I said before, if that's something you want to be prepared for (and if you're the only moneymaker in your family, you might well) you should increase your regular life insurance to cover the amount of the mortgage due, rather than taking out a special policy just for the mortgage. It'll cost less and give more flexibility. John Levine, ima!johnl PS: If the bank reposesses the house, sells it, and it still doesn't cover the mortgage, that's the bank's tough luck, and it suggests that they were pretty dumb to lend more than the house was worth.