Because both are sometimes referred to as "Mortgage Insurance", Many people confuse PMI with MPI when asked if they have Mortgage Insurance. Do you know the Critically Important difference?
PMI , or "Private Mortgage insurance." Only protects your lender.
PMI was required by your mortgage company at the time of your loan if your down payment was less than 20% of the purchase price of your home. It is automatically included in your mortgage payment and will remain included untill your mortgage balance is 78% or less than your original mortgage. PMI does not protect you, it only protects your mortgage company in the event you default on your mortgage. It reimburses the mortgage company for the expenses they incur in foreclosing on your property.
MPI , or "Mortgage Protection Insurance", protects you, the home owner and your family, by providing the funds to pay off the mortgage balance if the home owner should die before completing the mortgage. Leave a Deed, Not A Debt. Get MPI , "Mortgage Protection Insurance".
Level Term Life Insurance is often chosen as a low cost way to provide Life insurance protection for a specified period of time. For example, to cover a Home Mortgage or a Business loan, or until the youngest child in the family has grown and is no longer a dependent.
Level Term life insurance is commonly purchased to cover periods of 10 years, 15 years, 20 years, or 30 years.
During the selected period, both the insurance benefit and the premium remain level.
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