Mortgages

1. Questioner: Lori

   Question: My father-in-law passed away in 1988. We recently found an insurance policy on the mortgage loan. The envelope is marked in his handwriting 'If I should die before 1996 this policy guanantees payoff of house". The family never knew this policy existed and continued to pay on the mortgage for approx. 12 years after his death. The insurance company is Minnesota Mutual Life, under group policy number 3873-g, issued to The Michigan Savings and Loan League. There is also a loan number listed and an effective date of 12/13/1971. Do we have any recourse? What should I do first and whom should I contact? My mother-in-law is destitute and could use any money she might have coming to her. Thank you, View Answer

2. Questioner: Paul

   Question: For the long term, would it be better to prepay on one's mortgage or pay the required minimum amount due? I am able to prepay without penalty, which would result in lower interest paid over the long haul, but would that be enough to offset the advantages of paying the minimum due each month? I also know the mortgage interest deduction and liquidity issues can come into play, but is there a school of thought you would recommend for someone in their mid 20s in this scenario? View Answer

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