mortgage insurance
Lender's risk coverage
Mortgage insurance protects the lender if a borrower defaults on a home loan.
It's typically required when the down payment is less than 20% of the purchase price, reducing the lender's risk on high loan-to-value mortgages.
Despite protecting the lender, the borrower pays the premium: We can drop the mortgage insurance once we reach 20% equity.
- borrowerOne who takes temporarily
- loan officerEvaluates borrowing requests
- policyholderOwner of insurance contract
- premiumAdded cost for better
- monthly paymentRecurring scheduled remittance
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mortgage insurancerenting
Paying for temporary use
leasing · tenant · renter · lease agreement · rental housing
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Coverage against possession loss
hazard insurance · title insurance · flood insurance · home warranty · fire insurance
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