What is Mortgage Insurance?
'Mortgage
insurance is a financial guaranty for the lender that will help to
reduce or eliminate a loss in the case of a default by the borrower, and
it is almost universally required on loans where there is less than
twenty percent equity. That means if you are purchasing a home with less
than twenty percent down or refinancing to more than eighty percent of
your homes value, you are going to be required to pay mortgage
insurance. In other words, mortgage insurance spreads the risk between
the lender and the insurance company.'
No comments:
Post a Comment