Mortgage payment insurance is like a good life insurance policy. In case you can’t be there to make payments on your mortgage, the insurance will help you to cover the payment each time you can not do so. But, here is the catch with this payment insurance for a mortgage. You need to understand the detailed terms of mortgage payment insurance in case you do end up needing to use it. As for deciding if you need to have this sort of coverage, you will be able to better determine when you have some additional information on the topic first.
Mortgage payment insurance is an insurance policy you take out. In case you do not have the means to pay your monthly payment in full due to a variety of circumstances, the insurance can help. But, this is usually only in extreme cases such as losing a job, death, or injury (terms can vary from policy to policy). Often times, certain conditions will limit what amount will be issued toward your mortgage payment. Having this type of insurance, though, can help to protect you and your family from foreclosure on a home should you not be able to work. It can be a huge relief when bad times strike.
Some mortgage companies offer this option to their borrowers. To find out if your mortgage company does, you simply need to call them and ask. But, there are also outside companies that offer mortgage payment insurance. This can include insurance companies with which you currently hold policies. It is a wise decision to do a little comparison shopping to find the best mortgage payment insurance before settling on a particular one. Some of the reasons to comparison shop are listed here.
First, you will want to know the terms of the mortgage payment insurance. What does the insurance cover? When will they make a payment towards your mortgage? Will there be a time lapse in which your mortgage payment gets behind?
Of course, you will want to know how long the mortgage insurance will cover payments. Sometimes, in the case of death, it may actually pay off for your entire mortgage for you.
The most important aspect to consider about mortgage payment insurance is the cost. If you can afford to have this benefit, it can be a wise choice. When comparing one mortgage insurance provider to the next, make sure you know how much payment you will have to make each month.
Then, compare who has the right mortgage payment insurance for you. Which payment insurance company offers the best terms for the cost you must pay? When you decide to purchase mortgage payment insurance, you may be one step closer to insuring your family’s well being if you are not able to make mortgage payments yourself. It is a very strong possibility that you will never need this coverage. But, then again, you may one day and it will be a very powerful tool if you ever do! The ultimate decision lies with you on whether or not you need coverage. The insurance payment you make may be nothing compared to the security it can offer.
It must be noted that mortgage payment insurance (MPI) is not in any way related to private mortgage insurance (PMI) required on some loans. PMI is a policy that you pay for yet the benefit is only to cover a portion of the mortgage underwriter’s cost should you default on the loan. MPI, on the other hand, is paid by you, but you get the benefits of their paying your monthly mortgage payments during a time of disability, accident or death. Mortgage payment insurance is sometimes known as “credit life”. Another good alternative is disability insurance which could provide benefits for both your mortgage payments and living expenses.
Mortgage Equity Defined
Mortgage Payment Insurance
Mortgage Payment Options
The Mortgage Pre-Approval Process