MORTGAGE INSURANCE

WHAT IS MORTGAGE INSURANCE?

Mortgage insurance is an insurance policy that protects lenders against some or most of the losses that result from defaults on home mortgages. it's required primarily for borrowers making a down payment of less than 20%. Mortgage insurance is NOT for the borrower/purchaser of the home, it covers/protects the lender.

HOW DOES MORTGAGE INSURANCE WORK? IS IT LIKE HOME OR AUTO INSURANCE?

Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and paid for by the borrower, again to protect the mortgage company against loss or an emergency. If a borrower can't repay an insured mortgage loan as agreed, the lender may foreclose on the property and file a claim with the mortgage insurer for some or most of the total losses.

For professional advice on all aspects of buying and selling real estate, call or email Risa Saltman at RE/MAX Town & Country Realty, 407-699-4901 email risa@risa.net or visit my website at: Risa.net

Written by Risa Saltman, Orlando Realtor providing exceptional Orlando Real Estate services for people looking to buy or sell in any of the area in Orlando,Fl. Please visit my Orlando Real Estate blog to find out the latest real estate market information and news.

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