North Dakota residents are increasingly leaning toward homeownership as opposed to renting. After all, paying rent every month knowing the home you’re paying for will never be yours can certainly be discouraging. That where North Dakota mortgage protection insurance comes in handy.
Purchasing a home gives people the opportunity to actually have something to show for those monthly payments once all is said and done.
Furthermore, at some point, the mortgage will be paid off, and there won’t be any more payments to worry about.
Protecting North Dakota Families Against Losing Their Homes
While purchasing a home comes with numerous benefits, it also brings about a certain amount of uncertainty. Mortgage lenders expect their payments to arrive on time each month.
If that doesn’t happen, the offending borrowers could lose their homes. That’s the case even if the family’s main source of income is taken away.
If you were to meet with an unexpected demise, would your family be able to continue making those monthly mortgage payments?
Most North Dakota families wouldn’t be able to continue paying their mortgages if their primary breadwinner were to pass away. That’s where mortgage protection insurance, or MPI, comes into play.
Mortgage protection insurance is designed to cover the remaining balance of a policyholder’s mortgage if something happens to prevent him or her from doing so.
It may also provide a certain amount of mortgage assistance if a policyholder suffers from a debilitating injury or illness. In both those cases, the coverage provider would send a payout directly to the mortgage company.
Looking at the Cost of Mortgage Protection Insurance
At this point, you may be wondering how much that added protection might cost. MPI policies vary based on certain factors, such as the remaining mortgage balance in question, your age and health, and how dangerous your job may be.
Having said that, some policies start as low as $20 per month. The average home price in North Dakota is $278,000. An average MPI policy for that amount could cost about $50 per month or so.
In terms of payouts, policies are available to cover the full array of home values and mortgage balances. As mentioned, the price of a policy will likely rise in proportion to the remaining balance of the mortgage being insured.
As monthly mortgage payments are made and the balance drops, so does the payout of the MPI policy. Policies can be purchased at any time after buying a home.
Making Sure Your Family Is Covered
Everyone needs a little extra reassurance in life. It’s impossible to predict what the future might hold. Based on the latest reports from the financial sector, the majority of families in America are only a few paychecks away from poverty.
If you were to pass away before your mortgage is paid off, your family might struggle to make those monthly payments and keep their home. Mortgage protection insurance can help keep that from happening.
Basic MPI won’t cover mortgage payments in the event of job loss or certain other unexpected problems. Still, it’ll give your family extra protection in the event you pass away or become ill or injured. That extra coverage could make a world of difference for your family.