Is now a good time to buy a house? Some people think so. According to Newsday, a poll found that more New Yorkers are planning to buy a home in the next six months than any time in the last 20 years. If your clients are buying a house, or even if they are already homeowners, make sure their investment is protected with disability insurance.
Why Are People Buying Houses Now?
The pandemic has prompted some people to move out the city. According to The Harris Poll, almost 40% of people have considered fleeing the city during the pandemic. Some of these people have gone through with it, and some of them are buying houses.
At the same time, mortgage rates have hit a record low. According to CNBC, the average contract interest rate for a 30-year fixed-rate mortgage (with conforming loan balances of up to $510,400) has gone down to 3.01%. Many people are taking advantage of this by refinancing, and applications for a mortgage to purchase a home are 21% higher than they were a year ago.
The Risks That Come with Homeownership
A house can be a great investment – if things go as planned. Unfortunately, that isn’t always the case. According to ATTOM Data Solutions, there were 165,530 foreclosure filings on U.S. properties in the first six months of 2020, and that’s considered really low. In the first six months of 2010, there were 1,654,634 filings.
Many factors contribute to foreclosures. Subprime mortgage rates can balloon, for example, or people can get laid off. Other times, foreclosures occur when an income-earner gets sick or injured.
A disability can hit a person’s finances twice. First, they may lose their ability to work and earn an income. Second, they may be hit with large out-of-pocket medical costs, a common problem even for people who have health insurance. Disability insurance provides an important safety net.
Help Your Clients Get the Right Level of Coverage
Homeowners can protect their investment by purchasing disability insurance. Some may balk at the price, however, especially if their finances are stressed because of all the costs that go along with purchasing a new home.
One solution is to provide a disability insurance option that meets your client’s budget. In some cases, this may be maximum income protection. Other times, it may be just enough to cover the mortgage only. You can also offer something in the middle – enough to cover the mortgage, the cars and other crucial bills.
Help your clients find the right level of protection with the Disability Insurance Quote Options Worksheet.