Many homeowners often get mortgage insurance confused with PMI (private mortgage insurance). PMI is the product in which homeowners are required to purchase to protect the lender in the event of them defaulting on their loan. Mortgage insurance is the same thing as mortgage protection and mortgage term insurance, in that mortgage insurance is used to protect the homeowner's family in the unexpected event of their death. Upon the death of the insured homeowner, the coverage amount of the mortgage insurance policy would be given to the beneficiary(ies) to pay off the mortgage and any other debts or expenses.
Your mortgage insurance premiums are guaranteed to not increase and your death benefit is guaranteed to not decrease for the entire length of your mortgage insurance policy. Your coverage amount can be used upon your death for anything your beneficiary(ies) would need. Your death benefit can vary from lump-sum to installment payouts depending on what mortgage insurance you choose. Previously, mortgage insurance rates were determined by the outstanding balance of the mortgage. However, most quality mortgage insurance policies these days will pay the original mortgage balance, despite changes of value in your home throughout your policy holding period.
Your death benefit can be used towards a number of expenses and are not limited to the mortgage payments. This coverage amount can be used to make payments on a number of things, including everyday bills and household expenses, credit card debt, auto loans, home equity lines of credit (HELOC's), tuition, funeral/burial expenses, and nursing home costs.
Mortgage insurance is one of the single most important products a homeowner can purchase to secure their family's financial future. With mortgage insurance, the insured homeowner has the option of decreasing their death benefit as much and as often as needed as their mortgage decreases. As their coverage amount decreases, their mortgage insurance premium will decrease accordingly. Their mortgage insurance premium will decrease at the rate when it was locked in, instead of it being five or ten years from now's prices, which will be much, much higher.
TermAdvantage is committed to finding you mortgage insurance that fits your family's specific needs and budget. Since mortgage insurance varies in price substantially, TermAdvantage shops over 2,000 mortgage insurance companies to find a policy custom-fitted to your exact specifications. While the decision to purchase mortgage insurance is an important one, TermAdvantage is committed to bringing you the best available mortgage insurance at the lowest rate from the nation's highest-rated (A or better by AMBest.com) mortgage insurance companies.
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