What is the difference between Mortgage Insurance, Mortgage Disability Insurance and Mortgage Life Insurance?
Mortgage Insurance (MI) is insurance written by an independent mortgage insurance company (MIC) protecting the lender against loss incurred by a mortgage default. Often, MI is required by the lenders when the Loan-to-Value ratio (the amount of the loan divided by the value of the home) is greater than 80%. Mortgage Disability Insurance is a disability insurance policy which will pay the monthly mortgage payment in the event of a covered disability of an insured borrower for a specified period of time. Mortgage Life Insurance is term life insurance policy that covers the declining balance of a loan secured by a mortgage, and is payable upon death of a covered borrower.
Mortgage Insurance (MI) is insurance written by an independent mortgage insurance company (MIC) protecting the lender against loss incurred by a mortgage default. Often, MI is required by lenders when the Loan-to-Value ratio (the amount of the loan divided by the value of the home) is greater than 80%. Mortgage Disability Insurance is a disability insurance policy that will pay the monthly mortgage payment in the event of a covered disability of an insured borrower for a specified period of time. Mortgage Life Insurance is a term life insurance policy that covers the declining balance of a loan secured by a mortgage, and is payable upon death of a covered borrower.
