When you take out a mortgage loan with a financial institution, you are required to have homeowners insurance and provide proof of it to the lender. This, of course, just assures your lender that you and your house are covered should something happen to your home.
In some cases when proof of homeowners insurance is not provided to the lender, they will force place an insurance policy for you and add the cost into your monthly payment. Although this is good in that the lender is making sure your home is covered, it will also come at a higher cost to you.
Recently, we’ve been informed that the cost for MPI could be significantly higher than it normally is, which is why we’re writing this blog. A homeowner should not rely on MPI through their lender and should seek out their own homeowners insurance policy to help bring this cost down. Don’t forget to ask your insurance agent to help you provide proof of this to your lender to make sure they take MPI and its cost off of your loan. (Be sure to also get quotes from multiple insurance agencies to make sure you’re comfortable with the price that you’ll be paying for your homeowners insurance.)
Need more information on MPI? If you have a current mortgage with HFS, simply give us a call at (808) 930-1400 or reach out to your lender directly.