What Does Mortgage Insurance Do?

By Dennis Durrel

Your home is important to you and your family, so you want to do everything that you can to protect it. Just as you want to protect your investment, the bank wants to protect the investment that it has made with lending you money. That is where Mortgage Insurance comes in.

Mortgage insurance is a procedure that will warranty the repayment of the loan that you had got from the bank. There are several different types of Mortgage insurance that one ought to know about.

Perhaps the most general type of mortgage insurance is private mortgage insurance, or PMI. This kind of insurance lives to protect lenders lest the loan goes into shirk. If this turn out then the PMI will give the bank part of the total loan amount.

Mortgage life insurance is a type of mortgage insurance that protects the bank against a loan not being repaid due to the death or disability of the person who borrowed originally.

Another type of mortgage insurance is title insurance. This policy can be taken out in either the mortgagee or the mortgagor's name. This type of mortgage insurance will protect either party from different ownership claims regarding the mortgaged property.

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