Say you want to buy a house you really like, but couldn’t get together such a large down payment—you could get a Private Mortgage Insurance policy along with your mortgage and get into your house without waiting and saving over a long period of time! You’ll be able to get into the home that you really wanted!
If you were the cautious type, and want to make sure nothing happens to your house–you also could get a Mortgage Protection Insurance Policy! By doing this you are making sure that you won’t lose your house if you are injured or dead, giving you the ability to leave something of value, your home, to your family if something were to happen!
After a few years of paying down your mortgage, you will finally come to the realization that you are above 20% equity paid into the house! That’s when you get rid of your Private Mortgage Insurance policy and you’ll only have your Mortgage Protection Insurance policy (And your mortgage too of course!) to pay for from here on out! Give it a shot and feel good knowing your home is protected!