With continuing news of the foreclosure crisis in the U.S., many (city) homeowners are looking for ways to protect their homes and families if they should lose their jobs, become disabled or pass away. Mortgage credit insurance ads are tempting – the product promises to take care of your mortgage in the case of family crisis. But the Equifax Personal Finance Blog offers a warning in the recent article, “

Avoid the Scam of Mortgage Credit Insurance.”

Insurance expert Linda Rey, author of the article, gives two primary reasons mortgage credit insurance is not a preferred option for most homebuyers. First, it’s very expensive. Other insurance options exist that can help with your mortgage and other expenses if needed.

Second, mortgage credit insurance covers a declining liability. As you pay down your mortgage, your policy covers less and less. But your insurer will continue charging you the same high rate.

What other types of insurance does Rey recommend? Disability and term life insurance. She says they help in several different situations and can cover expenses ranging from housing, to medical to other debt obligations.

Rey warns against using a mortgage lender who tells you that mortgage credit insurance is a requirement for your mortgage. Shop around for a lender who doesn’t use practices such as this, which Rey considers “predatory.” The legitimate insurance you may be required to buy is Private Mortgage Insurance. PMI is required on most mortgage loans that are for more than 80 percent of the home’s value. It is a protection for the lender, not the borrower.

You’ll find more information on different types of insurance at the

Equifax Personal Finance Blog, a favorite source for credit, tax, insurance, retirement and real estate information.