Definition: The insurance "to pay off" a mortgage refers to securing additional funds or resources by borrowing money from an insurer that will cover any outstanding balance on the original mortgage loan. The process can involve refinancing the loan with a new loan, which may have higher interest rates and fees, in order to lower the monthly payments made on the original loan. The insurance "to pay off" another person's debt (in this case, their mortgage) is called a lien or security agreement. This type of agreement requires the borrower to make a regular payment to the lender for the amount owed. The borrower must also provide collateral as security in order to secure this payment. The borrower may choose to pay back all or part of the outstanding debt through a series of payments, known as "installments," rather than making a lump sum payment at once. In summary, the insurance "to pay off" a mortgage refers to securing additional funds (usually money borrowed) by borrowing against an existing loan. The term "insurance" is used in both contexts because it can refer to insurance policies that cover certain types of risks or events.
You've scored 50% OFF Factor 🤤
Forget the empty fridge stare-down. Factor delivers fresh meals to your door. Just heat & eat!
Click to sign up for FACTOR_ meals.