South Florida Real Estate Blog by Shari Orland, Realtor

For Boca Raton Homeowners, Clarifying PMI-MPI Confusion

Checking out an online piece dealing with some technical adjustments having to do with mortgage insurance the other day, I came across an indisputable statement:


“Many homeowners are confused about the difference between PMI (private mortgage insurance) and mortgage protection insurance (MPI).”

 

That, if anything, is a considerable understatement—especially because Boca Raton homeowners can sometimes find “mortgage protection insurance” abbreviated as well. If your professional duties include distinguishing the finer points of Boca Raton mortgages for your clients, you are unlikely to confuse “PMI” with “MPI.” But for the rest of humanity, that’s not necessarily the case. Since the difference is substantive, here’s a 30-second primer:

PMI is Private Mortgage Insurance. It’s designed to protect the lender rather than the homeowner. If Boca Raton homeowners run into trouble—for instance, if they were to lose their job—the PMI coverage will reimburse the lender for any shortfalls. PMI coverage is usually required when Boca Raton homeowners pay less than 20% of a property’s sale price as the down payment. When the loan-to-value of the mortgage reaches 78%, these policies can usually be canceled (sometimes that’s done automatically).

MPI is Mortgage Protection Insurance—a very different animal. This protects the Boca Raton homeowners, covering missed mortgage payments for designated periods of time under specific circumstances. Unlike PMI, this insurance is strictly voluntary on the homeowner’s part. MPI policies may pay off the entire mortgage if the homeowner dies—but those who have adequate...

For Delray Beach Real Estate, Friday’s Quadrupled-Barreled News

Last week ended with a quadruple-barreled blast of good news that bolstered prospects for Delray Beach real estate—an effect magnified by how unexpected all had been.

When times are good, Delray Beach real estate can’t help but benefit. That may seem to be so obvious that it doesn’t even need to be said, but a close cousin is arguably even more important: When people feel times are good, Delray Beach real estate benefits.

Friday’s positives were magnified by the contrast with what had been reported in earlier days. Although the holiday-shortened week had seen evidence of strong holiday sales, that was dampened by a grab-bag of alarming developments: government shutdown; China trade standoff; Apple sales losses... This meant that Friday’s raft of unexpected good news made for commentators who were, by day’s end, all but giddy.

First came reports of shockingly good U.S. economic performance. Wages in December “surged” (the Wall Street Journal). The annual wage gain of 3.2% “matched the fastest pace since 2009” (Bloomberg)—a trend that was accelerating (3.5% in December).

That wasn’t all. Not only were wages rising—jobs were, too. Employers had “shattered forecasts” (MarketWatch) by adding 140,000 more jobs than had been predicted. It “underlined that the American economy remains strong despite market turbulence” (CNN Business). Even an incremental rise in the jobless rate was greeted as welcome news—it meant that more workers were actively seeking work. Discouraged by bleak prospects, they’d been sitting on the sidelines for years.

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