Definition of «mortgage insurance»

Mortgage insurance is a type of insurance that protects lenders against losses caused by defaults on mortgage loans. It is usually required for borrowers who make a down payment of less than 20% of the purchase price, and helps to reduce the risk associated with low-downpayment loans. The cost of mortgage insurance is typically added to the monthly mortgage payment, and it remains in effect until the loan is paid off or cancelled.

Sentences with «mortgage insurance»

  • For the last several years, homeowners who purchased their residence in 2007 or later have been enjoying the deduction of private mortgage insurance premiums. (blog.compmort.com)
  • Because of this failure to come up with the standard down payment, more and more people began paying private mortgage insurance premiums during the real estate boom of the mid 2000s. (knsfinancial.com)
  • If you do not put 20 % down on the home, you will be required to pay for mortgage insurance for many programs. (creditdonkey.com)
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