Understanding Mortgage Insurance with Homeowners Insurance Beverlywood
Mortgage insurance is a type of insurance that protects the lender if the borrower defaults on their mortgage loan. It is required by mortgage lenders when the borrower puts down less than 20% of the purchase price as a down payment.
Mortgage insurance allows lenders to offer loans to borrowers with less-than-perfect credit or limited down payment funds while protecting their property investment. The cost of mortgage insurance varies depending on the size of the down payment, loan amount, and type of loan. Borrowers should carefully consider the cost of mortgage insurance when deciding whether to put down less than 20% as a down payment. Whether you need home or mortgage insurance, you can contact Homeowners Insurance Beverlywood to help.