Mortgage Insurance

What is a Mortgage Insurance?

Mortgage Insurance is when the borrower doesn't have the required amount of downpayment for a loan and the mortgage insurance is to protect the provider if the borrower defaults on the loan.

When is a Mortgage Insurance required?

The amount of down payment required before the borrower needs mortgage insurance is dependant on the provider.

Is there anyway to not pay mortgage insurance if i dont have the required downpayment?

LPMI (Lender-paid private mortgage insurance) can be sometimes used where the provider pays the insurance but factors the mortgage cost into the loan

What are the advantages of a Mortgage Insurance?

There generally aren't any advantages except that you can have the cash free if needed

What are the disadvantage of a Mortgage Insurance?

The insurance could be spent on the house lowering the cost if the borrower has the inital cash upfront