Builders, banks offer free job-loss insurance to home buyers!

Builders, banks offer free job-loss insurance to home buyers
The insurance programs would make borrowers’ mortgage payments for up to six months if they become unemployed during the coverage period.
March 27, 2011|By Kenneth R. Harney
Insurance programs that make borrowers’ mortgage payments for up to six months if they lose their jobs during an initial one- to two-year coverage period are gaining popularity. Home builders are offering it to new buyers, and some of the country’s largest banks and mortgage lenders think it’s a win-win idea for shaky economic times.

Better yet, the bank, builder or other sponsor of the plan typically provides it free — no direct, out-of-pocket cost to the consumer — as part of its marketing package. Most programs come with specific dollar ceilings on coverage, often ranging from $2,000 to $2,500 a month. Some limit the amount they’ll pay to principal and interest only. Others cover principal, interest, property taxes and homeowners insurance up to a specific amount.
Courtesy of the Los Angeles Times