Checking out an online piece dealing with some technical adjustments having to do with mortgage insurance the other day, I came across an indisputable statement:
“Many homeowners are confused about the difference between PMI (private mortgage insurance) and mortgage protection insurance (MPI).”
That, if anything, is a considerable understatement—especially because Forsyth County homeowners can sometimes find “mortgage protection insurance” abbreviated as well. If your professional duties include distinguishing the finer points of Forsyth County mortgages for your clients, you are unlikely to confuse “PMI” with “MPI.” But for the rest of humanity, that’s not necessarily the case. Since the difference is substantive, here’s a 30-second primer:
PMI is Private Mortgage Insurance. It’s designed to protect the lender rather than the homeowner. If Forsyth County homeowners run into trouble—for instance, if they were to lose their job—the PMI coverage will reimburse the lender for any shortfalls. PMI coverage is usually required when Forsyth County homeowners pay less than 20% of a property’s sale price as the down payment. When the loan-to-value of the mortgage reaches 78%, these policies can usually be canceled (sometimes that’s done automatically).
MPI is Mortgage Protection Insurance—a very different animal. This protects the Forsyth County homeowners, covering missed mortgage payments for designated periods of time under specific circumstances. Unlike PMI, this insurance is strictly voluntary on the homeowner’s part. MPI policies may pay off the entire mortgage if the homeowner dies—but those who have adequate life insurance policies may find that expense unnecessary.
Part of my job is to be sure my clients stay informed about how each part of a home buying or selling procedure stands to affect their interests.
I hope you’ll call me whenever Forsyth County real estate matters arise!
This Cumming GA Real Estate blog is hosted by Gayle Barton of BERKSHIRE HATHAWAY HomeServices Georgia Properties.
I specialize in Real Estate sales in the following Forsyth County and North Fulton County cities: Cumming, Suwanee, Alpharetta, Milton and Johns Creek. Other north metro-Atlanta suburbs are serviced by request, so please call.
Gayle Barton Forsyth County Real Estate | Cumming GA Real Estate | Mountain Crest Homes For Sale
Gayle Barton Cumming GA Real Estate | Forsyth County Real Estate