Buying a home is an expensive investment. Mortgage insurance helps offset some of the risks associated with the purchase of a property. It is important to understand the different types of mortgage insurance. The major categories of mortgage insurance are mortgage default insurance, mortgage life insurance, and mortgage title insurance.
Mortgage default insurance is mandatory if your down payment is less than 20% and pays out to the lender, helping them offset their risk in case of a default on the loan. Mortgage life insurance policies pay out to your beneficiary and help offset your risk and protect your loved ones and investment in the event of your passing. Mortgage title insurance protects you and the lender from financial losses in case there are issues with the property title at the time of sale.
Buying a home and applying for a mortgage can be an exciting and stressful time, and applying for mortgage insurance on top of that can be an additional challenge. For all your mortgage insurance needs, trust the experienced team at Mortgage Squad Agents to find a solution that is right for you.