Mortgage Insurance
Plain English Definition: Mortgage Insurance protects lenders from financial loss if a borrower defaults on a mortgage loan.
What Mortgage Insurance really means for someone with an insurance policy
It ensures the lender gets paid if the borrower can’t meet their mortgage obligations, often required for homebuyers with small down payments.
Mortgage Insurance Real World Examples
- Private mortgage insurance (PMI) on conventional loans.
- Mortgage default insurance for government-backed loans.
- Lender-required coverage for low-down-payment mortgages.