Dictionary of Real Estate Terms: Mortgage Guarantee Insurance Co. (MGIC)
Mortgage Guarantee Insurance Co. (MGIC)
a private company that insures, to lenders, loan repayment in the event of default and/or foreclosure.
Example: Collins wants to arrange a loan for 90% of the cost of the home she is buying. The lender applies to MGIC for Private Mortgage Insurance . accepts and, for a premium, stands willing to accept a portion of any losses on the mortgage.
