Why Do You Need Mortgage Insurance And Homeowners Insurance?
You may be all ready to sign paperwork on the house of your dreams, but before you do that there are two other items of importance you must consider - mortgage insurance and homeowners insurance. Learn why these two items are so important and why do you need mortgage insurance and homeowners insurance? Find out how they can help protect you and your investment in this blog article! What is Mortgage Insurance? Mortgage insurance is a type of insurance that protects lenders from losses due to borrower default. It is required by lenders for loans with a high loan-to-value ratio, which are loans with a small down payment or a low equity stake in the property. Mortgage insurance can be provided by either the government or private insurers. The premium is typically paid by the borrower as part of the monthly mortgage payment. How Does Mortgage Insurance Work? Mortgage insurance is a type of insurance that protects lenders from losses associated with borrower defaults. It is typically ...