Is obliged outstanding balance?

Many people who take out a mortgage, think an outstanding balance required is. That is a wrong assumption. An outstanding balance is not required by law . Yet the conclusion of an outstanding balance highly recommended if you close a home loan or going to borrow a large sum.

Outstanding: not mandatory, indeed recommended

Although an outstanding balance so no compulsory insurance , there are several arguments nevertheless take one. First, many banks will be as outstanding balance condition set for the provision of a (mortgage) loan. That way they are sure that the loan amount is repaid, even after your death .

And also for yourself offers an outstanding balance several important advantages . Temporary life insurance builds to include additional security for your spouse and your dependents . This prevents them from coming after your death into financial trouble because of repayment of the loan is too heavy.

Finally, there is one final, no less important advantage associated with the outstanding balance: is an outstanding balance, under certain conditions, tax deductible !

Outstanding: not required by lender

It is not required to take an outstanding balance at the bank or lender where you have closed the home loan or loan. You can feel free to go into business with another insurer, which potentially can present favorable rates!

Banks will often try to convince rebates for credit as well as for the outstanding balance to go into business with them. While it is possible for an interesting proposal, it always pays to inquire further with other insurers . Chances are not insignificant that they will benefit from the outstanding balance with a better offer on the bridge.

Tip: take all options calmly considered. Certainly do a simulation of your outstanding balance. That way you can better compare !