Mortgage Protection Insurance
Mortgage Protection Insurance (MPI)
is a type of insurance policy that helps your family make your monthly mortgage payments in the case death or an emergency occurred before your mortgage is fully paid off.
Some MPI policies will also offer coverage for a certain time in the case of losing a job or becoming injured or disabled after an accident.
• Do You Have To Have Mortgage Protection Insurance?
It is not necessary to have mortgage protection insurance, but it is highly recommended.
You can buy a home without paying for MPI, though your lender may recommend a policy, it’s designed to protect your loved ones from struggles to pay the mortgage.
• MPI vs PMI
Private Mortgage Insurance (PMI) is typically required as one of the conditions of homeowners when purchasing a conventional loan.
Doing so protects the homeowner and residents from paying the loan in the event that payments cannot be made.
PMI insurance doesn’t pay your mortgage in the event of death.
It is possible to remove PMI’s once the borrower is successful in paying down enough of the mortgage’s principal.
PMI’s usually require a down payment of 20% of the houses’ purchasing price.
Usually included in the monthly payment, PMI’s typically cost anywhere between 0.4% and 2.25% of the annual mortgage. *
MPI VS FHA Mortgage Insurance
MPI isn’t the same as the mortgage insurance paid on an FHA loan; MPI’s are best for homeowners with lower credit scores or who have a smaller amount available for down payment.
An FHA loan requires two payments:
An upfront mortgage premium: will usually be equal to 1.75% of the total value of your loan.
Annual payment: Typically depends on the amount of money borrowed, the size of the down payment, and the length of the mortgage term. how much money you borrow, the size of your down payment and the length of your mortgage term
Similar to PMI, FHA insurance protects the lender against potential default on mortgages.
Regardless if your loan has PMI or FHA insurance, it can be a good idea to buy an MPI policy if you can’t afford a traditional life insurance policy and want to ensure your home goes to your heirs.
They will have the opportunity to take over the payment, but it’s not always easy to budget for a cost you aren’t expecting.
Mortgage Protection Insurance Cost
Insurance companies will examine the remaining balance of your mortgage loan and how much time is left in your loan term to determine to cost of your mortgage protection.
Traditionally, they’ll also take your age, job and overall risk level into consideration.
In general, though, you can expect to pay at least $50 a month for a bare-minimum MPI policy.
*https://www.investopedia.com/ask/answers/09/pmi.asp
Our MPI Offers include:
Term Life
Index Universal Life
Return of Premium Policies
As the mortgage decreases over the years your need for MPI also decreases.
Our offers are designed to change with your financial needs.