What is Mortgage Insurance?
Mortgage Insurance, also known as Private Mortgage Insurance (PMI), is insurance for the lender in case the mortgage goes into foreclosure. Mortgage Insurance is a monthly premium that is added to your mortgage payment. Mortgage Insurance is only required if you finance more than 80% of the value or purchase price, whichever is lower. If you have a 20% down payment, no Mortgage Insurance is required.
Mortgage insurance (MI) is required depending on the terms and conditions of your loan. MI protects a lender against some financial loss if a borrower defaults on the mortgage loan. This type of insurance is different from other types of insurance purchased by a borrower, and should not be confused with credit life, property or casualty insurance. Mortgagors cannot file a claim against the policy.
Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It’s required primarily for borrowers making a down payment of less than 20%. Mortgage insurance covers the lender not the borrower and is not tax deductible. There are loans that don’t require mortgage insurance. Please call or e-mail for a free home buyers consutlation.
A. Mortgage Insurance insures lenders in the event of a borrower’s foreclosure. It is paid for by the borrower, and allows lenders to grant loans that they otherwise would not consider. Depending on credit scores and loan structure, mortgage insurance may be required when the down payment is less than 20%. top.
