Private Mortgage Insurance v.s. Mortgage Protection Insurance

architecture-1867187_960_720There are a lot of comparisons of these two types of insurance for obvious reasons—they both deal with mortgages! Although they both do have mortgage in the name and have similar ideas to them, they are different completely different types of policies that fit different scenarios!

Private Mortgage Insurance is usually used when you want to lower your down payment or want a way to secure a loan due to a lack of a sufficient down payment! People use these policies to get into a house much earlier than they usually would be able to, or just to lower their down payment—but it all depends on situation! If you fall behind on your mortgage payments with this type of coverage you will still lose your house since it only pays out to the bank for the loss of value due to foreclosure and nothing to you, so be sure to keep up your payments even with this type of insurance!

Mortgage Protection Insurance on the other hand protects your home from a lender’s architecture-1171462_960_720foreclosure if you become disabled or die since the policy will pay out to your bank and your family will get to keep their home! This insurance is very useful and can have riders added to protect you for a certain period of time if you lost your job or become temporarily disabled—just always remember to keep up with the payments for it to work!

These two types of policies are viewed as one that helps the lender and one that helps the buyer—while both are true, always look at both! Don’t let anyone decide for you what kind of insurance policy you should and should not get in your situation!

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