What does Mortgage Insurance Policy mean? Read on to discover the definition & meaning of the term Mortgage Insurance Policy - to help you better understand the language used in insurance policies.
Mortgage Insurance Policy
A mortgage insurance policy is an insurance product that protects a mortgage lender in case the borrower defaults on loan repayment, dies, or is unable to fulfill their loan obligation for whatever reason. It may refer to mortgage life insurance, mortgage title insurance, or private mortgage insurance (PMI). Homeowners who cannot pay a down payment of at least 20% are often required to purchase PMI.
We hope the you have a better understanding of the meaning of Mortgage Insurance Policy.