Mortgage Protection Insurance
Mortgage protection insurance policies function as a type of life or disability insurance. The cost of the monthly premium varies depending on the amount of the mortgage, your age and your health. MPI policies in general only cover the principal and interest portion of a mortgage payment, so other fees like HOA dues, property taxes and homeowner’s insurance would still be your responsibility. You might be able to add a policy rider, however, to cover these expenses.
Some policies are designed to help those living in your home, or your loved ones, with making the mortgage payments in the event of your passing. For example, if you die with a balance on your mortgage and have an MPI policy, your insurer pays the remainder of the balance directly to your lender. Your partner or your heirs won’t have to worry about making the remaining payments or losing the home.
For further details or questions, please fill out the Contact US form on our site, or simply call us to schedule a no obligation appointment with a specialist at 714.584.8999