It has come to my attention that some home buyers mistakenly believe that the PMI, or Private Mortgage Insurance that they are paying for as part of their mortgage payment – protects them.
PMI is generally required by the lender when the home buyer has less than the recommended 20% down payment, or equity in the home they are buying. While you pay the premium, this insurance only protects the bank in the event that you default on your mortgage and the home sells for less than the outstanding balance owed at the foreclosure auction.
PMI is not coverage that protects you, it protects the bank and it does not pay off your mortgage in the event that you die.
If you do need life insurance please, please call or click.
