Endowments

As Eighties and Early Nineties saw an unprecedented surge in the buying of mortgage Endowments, nowadays market is teeming with their selling trends. Multiple factors could be responsible for that trend — from a deficit in Endowments surrender values to the warnings issued by endowment life offices regarding the ‘endowment shortfall red letter’. Due to the advent of Internet and its technologies, people are finding it much easier to explore and exploit new vistas to benefit from their endowment policies. Due to the vast options made available to policy holders at their fingertips by the Internet, now policy holders can receive endowment surrender values much higher than that offered by their life offices.

Betting the Ranch: Risking Your Home to Buy Securities

With a rising stock market, record low interest rates, and large gains in home value, some investors have taken out new mortgages, refinanced, or obtained line-of-credits secured by their homes for the specific purpose of investing in securities. The hope is that the investment will not only pay the mortgage, but also generate additional income. Unfortunately, it doesn’t always work out that way.

Investors who must rely on investment returns to make their mortgage payments could end up defaulting on their home loans if their investments decline and they are unable to meet their monthly mortgage payments. In short, investors who bet the ranch could lose it.