Before you accept the responsibilities of taking on a mortgage that spans several decades, there’s an option you might consider to protect the home from foreclosure in case you’re not able to make the monthly mortgage payments.
Mortgage protection insurance (MPI) protects homeowners if a health issue arises and they become disabled, or a job loss is lengthy. In the worst-case scenario, this type of coverage can pay off the balance of the mortgage if the borrower dies.
MPI can be a safety net for some homeowners while others may view it as an unnecessary expense that will drain an already tight budget. Deciding whether to purchase a mortgage insurance policy depends mostly on your health and financial circumstances.
What is mortgage protection insurance?
MPI policies basically function as a type of life or disability insurance. The cost of the monthly premium varies, depending on the amount of the loan