A quick update... you are not "required" to carry life insurance, but since we do not combine loan insurance in with our loans, we can only recommend it as a "side" product. So disregard shiprepairwoman... they're not combined products (which was a funny thing for her to say, since every bank/lending institution does, in fact, combine insurance IN with loans and mortgages... I wonder if she's so quick to voice her opinion to them).
Depending on the term you applied for, your rate will not go up... do not worry about that. IE, if you have a 20 year mortgage and 20 year term insurance, then you have 20 years of fixed-rate coverage, that doesn't decrease in face amount (like normal mortgage insurance).
If you appreciate the need to have coverage against your loan, and you like the rate, what's the question?
By the way, check into your comment about "no pre-payment penalties". Here, in Canada, the loan has fixed qualities for the first 3 years... then it becomes wide open, with no penalties or costs whatsoever.
And Ross, please... consider the policy/loan on its merits, not on the hype and crap being spouted by people who know nothing, but love to criticize ("Run" Lisa? "Run"? Based on what... cause the loan will do something for him automatically? Or do you also detest the fact that banks sell crappy 5 year, depreciating-face mortgage insurance to unsuspecting, non-knowledgable, trusting clients who assume they're getting the best value? Yeah, that must be it... "Run" from them!)
· 1 decade ago