Mortgage insurance is a type of insurance coverage that protects the lender against loss if a borrower defaults on a mortgage loan. Mortgage insurance is usually required on loans where the down payment is less than 20% of the home’s purchase price or if you’re buying a home in a high-cost area. The borrower pays for mortgage insurance premiums as part of their monthly mortgage payments.
Mortgage insurance protects your lender in the event that you can’t pay your mortgage. It’s different from homeowners insurance, which protects you and your home in the event of a disaster or theft. In the event of disability or death, the insurance covers your mortgage payments or any other loans.
The cost of mortgage insurance depends on several factors, including your credit score and down payment amount.
Do you know Mortgage insurance is often more expensive through banks than insurance companies? We can help answer your questions about mortgage insurance options and plans. We’ll also help you compare different types of policies so that you can find the one that best meets your needs before you commit to a mortgage.