Denised, Other/Just Looking in Jacksonville, FL

does MIP pay off if home owner dies?

Asked by Denised, Jacksonville, FL Tue Nov 10, 2009

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8
Good morning Denised,

I'm afraid you are confusing MIP (FHA Mortgage Insurance Premium) with some other kind of insurance. MIP is in place to protect the Lender in the event a Homeowner with an FHA Insured Loan defaults. The MIP is in place as long as the loan is active. It does not cancel or payoff if the Homeowner dies.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Tue Sep 18, 2012
I live in Michigan I need an insurance I can get on my spouse if he dies the mortage will be paid off
0 votes Thank Flag Link Mon Sep 17, 2012
Obviously Blaine is always right too, or at least one very smart man:-)!
0 votes Thank Flag Link Tue Nov 10, 2009
MIP is to protect the bank, not you. If you are unable to pay your mortgage and the bank has to take the property back, MIP will pay the bank for any loss in value they take when reselling the home. MIP will not pay you or your family anything. It allows you to borrow more than 80% of the value of the home and protects the bank from default. What you want is Mortgage Protection Insurance. They have policies that pay off the home if you die or become disabled. Some will even pay off your mortgage early if you don't die or become disabled. If you are interested in researching some options you can shoot me an email at donstevens@getgliga.com or call me at 888-438-4544. Ask for Don


The Home Insurance Specialists
http://www.getgliga.com
0 votes Thank Flag Link Tue Nov 10, 2009
MIP is to pay the lender if the borrower defaults. There are separate insurance policies that can be purchased to pay off the mortgage in the event the home owner dies. It can pay it if a spouse dies and one survives. Search the web or speak to an insurance agent to see if they sell this type of policy.

Hope this answer helps.

Sharon Alters, CDPE, GRI
Short Sale Specialist ~ Distressed Properties
0 votes Thank Flag Link Tue Nov 10, 2009
Mip= Mortgage linsurance premium
THis premium allows you the finance over 80% of the loan amount.
0 votes Thank Flag Link Tue Nov 10, 2009
Christian is always right.

Blaine Rabe
904-874-0814
0 votes Thank Flag Link Tue Nov 10, 2009
no it is only for if you default on the loan FHA will pay the lender.
0 votes Thank Flag Link Tue Nov 10, 2009
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