What is the difference between Mortgage Insurance and Homeowners Insurance?
Mortgage Insurance is usually required anytime a borrower puts less than 20% down, but not in every case. This is the bank’s way of insuring that the loan will be protected in case a borrower defaults on their loan payments. Hazard insurance, or as it is more commonly called, homeowner’s insurance, is required on every loan. Whether it is included in your payments, homeowners dues, or you pay it separately, you must have it to protect your property in case of a natural act occurring and causing damage to the home.