PMI – Private Mortgage Insurance, also call mortgage insurance or MI, enables borrowers to buy a house with only a modest down payment. PMI is most commonly used by lenders for loans of which the borrower makes a down payment of less than 20%. These loans are generally considered more risky because the borrower has only minimal equity in the property and, therefore, is considered more likely to default. MI gives the lender added security to offset the risk of loans with smaller down payments. The borrower pays the mortgage insurance premiums, which are included in the monthly mortgage payment.

MI insures the bank that you will not default on your loan, or they will pay out a claim to help offset the loss incurred by the default.  As 20 year insurance agent, business owner, and homeowner, I’ve found that you also want to protect your investment.  One of the simplest and most cost effective ways for a home owner to protect themselves is through Life Insurance. As a home owner and provider for your family there are many forms of life insurance and there can be a couple of different ways to calculate how much life insurance is enough for you.  Below I have provided a simple tool that is commonly used, however, sitting down with a professional is always your best bet.   If you are looking for minimal coverage only to protect your mortgage/home then the product you will want to ask about is “Decreasing Term Life”.  It’s designed to decrease in value over time as you pay down your loan, so you are never over insured.`

The Acronym LIFE

Loans to pay off Mortgage, car loans & credit card debt

Income replacement of your annual income x 3

Final expenses: How much money is it going to cost to bury you

Expenses: Cost of taking care of family in the future that includes funding college

If you want to discuss Life insurance further please feel free to contact me.