What is the meaning of insured mortgage?
An insured mortgage is a mortgage that's protected by mortgage default insurance. The insurance protects the lender (not you, the consumer) against losses in the event you stop making your mortgage payments and default on your loan.
Is mortgage insurance the same as mortgage?
Mortgage insurance isn't included in your mortgage loan. It is an insurance policy and separate from your mortgage. Typically, there are two ways you may pay for your mortgage insurance: in a lump sum upfront, or over time with monthly payments.
What is a insured loan?
Insured loan means a loan which has been insured as evidenced by the issuance of an Insurance Certificate or by the endorsement of the note for insurance by the Commissioner.
What’s insured mortgage?
An insured mortgage (often referred to as a high-ratio mortgage) is one that is covered by mortgage default insurance (which is different than private Mortgage Protection Insurance). This type of insurance is paid by you, the borrower, to protect the lender against default and foreclosure.
Is mortgage insurance the same as mortgage?
Mortgage insurance isn't included in your mortgage loan. It is an insurance policy and separate from your mortgage. Typically, there are two ways you may pay for your mortgage insurance: in a lump sum upfront, or over time with monthly payments.
Why mortgage insurance is important?
Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get. Typically, borrowers making a down payment of less than 20 percent of the purchase price of the home will need to pay for mortgage insurance.