Mortgage protection worksheet
Mortgage Protection Worksheet: How the Amount Is Figured
A free worksheet that turns your loan balance and years left into a coverage amount to talk through. Nothing you type is sent unless you submit the form.
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The mortgage protection worksheet adds your remaining loan balance to the yearly home costs you choose, times the years left on the loan. It subtracts funds set aside and life insurance you already have. What is left is a coverage amount to talk through, shown up to $3,000,000.
Mortgage planning worksheet
Step by step
How the worksheet works
Enter your loan
Type the remaining balance and the years left on the loan, from 1 to 40. Your lender statement lists both.
Add yearly home costs
Include property taxes, HOA charges and upkeep if you want them counted. Leave your loan payment out so nothing counts twice.
Pick a coverage length
Choose 10, 15, 20, 25 or 30 years to compare with the years left on the loan. The pick does not select a policy.
Add what you already have
Enter funds set aside and life insurance already in place for these same needs. Leave a line blank if it does not apply.
Inputs
What you enter
Your loan
- Remaining mortgage balance
- Years left on the loan (1 to 40)
Home costs
- Property taxes each year
- HOA charges each year
- Upkeep and repairs each year
Length and what you have
- Coverage length: 10, 15, 20, 25 or 30 years
- Funds set aside for these needs
- Life insurance you already have
The formula
The math
Total need
Remaining balance, plus yearly home costs times the years left on the loan. Your loan payment is left out because the balance already covers it.
The gap
Total need, minus funds set aside, minus life insurance you already have. If the answer is below zero, the gap is zero.
Loan years left open
Years left on the loan, minus the coverage length you pick. If the answer is below zero, it shows zero.
The amount shown
The worksheet shows the gap, up to $3,000,000. A bigger gap shows with a plus sign and a note to ask Joe about larger amounts.
Worked example
Example figures only. They are not typical amounts and not an estimate for your family.
| Remaining loan balance | $180,000 |
|---|---|
| Yearly home costs (taxes, HOA, upkeep) | $4,000 |
| Years left on the loan | 20 |
| Home costs for 20 years | $80,000 |
| Total need | $260,000 |
| Funds set aside | minus $10,000 |
| Life insurance already in place | minus $50,000 |
| Gap | $200,000 |
| Loan years left open with a 20-year pick | 0 |
Good to know
What the result does not tell you
- This is an estimate for planning. It does not promise that a death benefit will pay off the loan.
- The death benefit goes to the beneficiary you name, not to the lender. The policy terms decide what is paid.
- Term life can be planned around the amount for the length you pick. Health questions, age limits and approval come from the insurance company.
Where the facts come from
Sources
- Consumer Financial Protection Bureau: What is an escrow or impound account?
Explains how lenders collect money for property-related expenses such as property taxes. This is why the worksheet lets you count yearly home costs.
- Consumer Financial Protection Bureau: Owning a home
Plain guidance on the loan terms and statements the worksheet asks you to read.
- Triple-I: How much life insurance do I need?
Background on adding up debts and expenses when you think about coverage.
FAQ
Questions about this worksheet
How does the mortgage protection worksheet figure the amount?
It adds your remaining loan balance to your yearly home costs times the years left. Then it subtracts funds set aside and life insurance you already have. The result is a coverage amount, shown up to $3,000,000.
Why does the worksheet leave out my loan payment?
Your loan payment already pays down the balance. Adding it to the balance would count the same money twice. The worksheet uses the balance and the yearly home costs you choose.
Does the death benefit go to my lender?
On this page, the death benefit goes to the beneficiary you name, not the lender. That person can use it for the mortgage or for other needs. The policy terms decide what is paid.
Does the worksheet save or send what I type?
No. What you type stays on this page. The site only counts that someone started or finished the worksheet, with no dollar figures. Nothing reaches me unless you fill out the form and submit it.
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