What is the definition of Mortgage Insurance?
Mortgage Insurance is a coverage that protects the mortgage holder's life within the duration of the mortgage.
Mortgage insurance is usually a decreasing term life insurance which pays the lender the death benefit to cover for the unpaid balance of the mortgage. The face amount is designed to decrease over time as the mortgage holder provides the mortgage payments. Mortgage insurance protects the interest of the bank or depository institution that issued the mortgage. It may be faced with a huge loss when the mortgage holder dies.
Another form of mortgage insurance covers against the possibility that the mortgage holder becomes unemployed.
Mortgage insurance is only issued when a number of requirements are met. These requirements involve the kind of property the mortgage is issued for, the size (monetary amount) of the mortgage, as well as information like the borrower's qualifications.
| Not a bit | Very useful |
- Mortgage-Backed Securities
- Multiple Peril Policy
- Municipal Bond Insurance
- Municipal Liability Insurance
- Mutual Holding Company
- Mutual Insurance Company
- Named Peril
- National Flood Insurance Program
- Net Annuity Cost
- Net Payment Cost Comparison Index
- Mortgage Guarantee Insurance
- Mortality Rate
- Mortality and Expense (M&E) Risk Charge
- Morbidity Rate
- Moral Hazard
- Money Supply
- Modified Premium Policies
- Misstatement of Age or Sex Provision
- Misrepresentation
- Mine Subsidence Coverage