Saturday, April 28, 2007
Mortgage holder
message from our sponsors;
Endowment mortgages work in such a way that the principle of the loan is covered by an endowment insurance policy. Thus the mortgage is paid off by paying insurance premiums on an insurance policy, which will usually be much lower than a mortage payment would be. The endowment policy ensures the mortgage holder will be able to pay off the loan when it becomes due. Thus the only thing that remains due is the interest on the loan.
This is in fact a very clever and innovative approach to mortgages that has enabled many people to own houses over the years. However in recent times, due to various reasons, endowments mortgages have not quite worked and people who take out such mortgages have not been able to pay off what is owed.
Endowment mortgages work in such a way that the principle of the loan is covered by an endowment insurance policy. Thus the mortgage is paid off by paying insurance premiums on an insurance policy, which will usually be much lower than a mortage payment would be. The endowment policy ensures the mortgage holder will be able to pay off the loan when it becomes due. Thus the only thing that remains due is the interest on the loan.
This is in fact a very clever and innovative approach to mortgages that has enabled many people to own houses over the years. However in recent times, due to various reasons, endowments mortgages have not quite worked and people who take out such mortgages have not been able to pay off what is owed.
