A lot of people ask what is an MRI in real estate transactions? Just to give a brief explanation of this, an Mortgage Redemption Insurance (MRI) is defined as decreasing-term life insurance policy taken by a mortgator to repay the balance on a mortgage if he or she dies before its full repayment (www.businessdictionary.com).It is one sure way of giving protection to one of your best assets you can pass on to your loved ones if there is a untimely demise of the one who loaned.
In the Philippines, most of the home loan borrowers who are buying a residential home (house and lot package) are required to availed this insurance when applying for loan through, bank financing, In-house financing or Pag-Ibig (HMDF) financing are required to apply as well or it is already incorporated on the monthly payments of buyers who availed of the following financing schemes available from developers offering the homes or HMDF financing as well.
A Mortgage Redemption Insurance can be a added cost on your payments but it can sure guarantee and give and advantage in one of your investments in the long haul. However, the best asset that put all this is YOU!
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