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