Small Business Resources, Business Advice and Forms from AllBusiness.com

Mortgage Insurance

The best tips and advice from our vast library of articles, videos, and business tools

Business Glossary
icon - industry associations

Definitions for: mortgage insurance
mortgage insurance

contract insuring a mortgage lender against default risk. Mortgage insurance allows a borrower to purchase a home with a down payment as low as 3 to 5% of the purchase price-even lessfor qualified borrowers-instead of the usual 20% down paymentlenders normally require. Insurance premiums are paid by the borrower.The Federal Housing Authority, an agency in the Department of Housing and Urban Development, insures mortgages on one-to-fourfamily houses and condominiums, and it reimburses the mortgage lender if default occurs. Mortgage insurance purchased from a commercial insurance carrier is known as

Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

Search the Business Glossary:

icon - industry associations

Industry Associations

Industry Associations
Mortgage Insurance Companies of America
U.S. and Australian mortgage insurance companies united to provide a forum for discussion of industrywide standards, and for representation before Congress and federal and state regulatory agencies that reviews housing-related ...

Members: 10
Founded: 1973