What Is Mortgage Loan Insurance?
- Mortgage loan insurance protects the mortgage lender in case you can’t make your mortgage payments. It doesn’t protect you. Mortgage loan insurance is also sometimes called mortgage default insurance.
- If your down payment is less than 20% of the price of your home, you must buy mortgage loan insurance.
- Your lender may require that you get mortgage loan insurance, even if you have a 20% down payment. That’s usually the case if you’re self-employed or have a poor credit history.
- Mortgage loan insurance isn’t available if:
- The Purchase Price Of The Home Is $1 Million Or More
- The Loan Doesn’t Meet The Mortgage Insurance Company’s Standards
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