Mortgage Insurance

Mortgage insurance is a policy that protects lenders from financial loss if a borrower defaults on their mortgage. There are two main types: private mortgage insurance (PMI) for conventional loans and government mortgage insurance for FHA loans. 

Mortgage insurance lowers the risk for the lender, allowing borrowers to qualify for loans they might not otherwise obtain. The insurance cost is usually added to the monthly mortgage payment or paid as an upfront premium, ensuring the lender’s investment is protected.