Mortgage Insurance

Mortgage insurance, both government or privately issued, protect the lender by guaranteeing a portion of the loan amount against losses. For example, if a lender holds an $80,000 mortgage (with expenses) and sells a foreclosure home for only $75,000, the mortgage insurance would reimburse the lender for that $5,000 short-fall. FHA and VA loans are essentially mortgage insurance programs; conventional loans require private mortgage insurance (PMI). With conforming loans, mortgage insurance is required whenever the LTV ratio exceeds 80%. For more information, see the "Mortgage Insurance" article in the "Mortgage Industry" section.

Win The Foreclosure Battle

Win The Foreclosure Battle

Get All The Support And Guidance You Need To Be A Success At Beating Foreclosure. This Book Is One Of The Most Valuable Resources In The World When It Comes To Successful Strategies To Save Your Home and Finances.

Get My Free Ebook


Post a comment