AllBusiness.com
    • Starting a Business
    • Career
    • Sales & Marketing
    • AI
    • Finance & Fundraising
    • M & A
    • Tech
    • Business Resources
    • Business Directory
    1. Home»
    2. Barrons Dictionary»
    3. mortgage insurance»

    Definition of mortgage insurance

    Dictionary of Banking Terms: 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

    Dictionary of Business Terms: mortgage insurance
    mortgage insurance

    insurance generally required by lenders of those who borrow more than 80%, generally up to 95% of a home's price. It will indemnify the lender in case of foreclosure of the loan. Indemnification is typically limited to losses suffered by the lender in the foreclosure process, up to 20% of the mortgage.

    Dictionary of Insurance Terms: mortgage insurance
    mortgage insurance

    life insurance that pays the balance of a mortgage if the mortgagor (insured) dies. Coverage is usually in the form of decreasing term insurance, with the amount of coverage decreasing as the debt decreases.

    Dictionary of Real Estate Terms: mortgage insurance
    mortgage insurance
    1. a policy that guarantees repayment of a mortgage loan in the event of death or, possibly, disability of the mortgagor.

    2. protection for the lender in the event of default, usually covering a portion of the amount borrowed.

    Example: Manning obtains a mortgage loan and, for an additional monthly premium, purchases mortgage insurance. Should Manning die before loan maturity, the policy will pay the remaining balance of the loan. This protects Manning's survivors from losing the property because of inability to continue the loan payments, and also protects the mortgagee.

    Search for definitions

    BizBuySell
    logo
    AllBusiness.com is a premier business website dedicated to providing entrepreneurs, business owners, and business professionals with articles, insights, actionable advice,
    and cutting-edge guides and resources. Covering a wide range of topics, from starting a business, fundraising, sales and marketing, and leadership, to emerging AI
    technologies and industry trends, AllBusiness.com empowers professionals with the knowledge they need to succeed.
    About UsContact UsExpert AuthorsGuest PostEmail NewsletterAdvertiseCookiesIntellectual PropertyTerms of UsePrivacy Policy
    Copyright © AliBusiness.com All Rights Reserved.
    logo
    • Experts
      • Latest Expert Articles
      • Expert Bios
      • Become an Expert
      • Become a Contributor
    • Starting a Business
      • Home-Based Business
      • Online Business
      • Franchising
      • Buying a Business
      • Selling a Business
      • Starting a Business
    • AI
    • Sales & Marketing
      • Advertising, Marketing & PR
      • Customer Service
      • E-Commerce
      • Pricing and Merchandising
      • Sales
      • Content Marketing
      • Search Engine Marketing
      • Search Engine Optimization
      • Social Media
    • Finance & Fundraising
      • Angel and Venture Funding
      • Accounting and Budgeting
      • Business Planning
      • Financing & Credit
      • Insurance & Risk Management
      • Legal
      • Taxes
      • Personal Finance
    • Technology
      • Apps
      • Cloud Computing
      • Hardware
      • Internet
      • Mobile
      • Security
      • Software
      • SOHO & Home Businesses
      • Office Technology
    • Career
      • Company Culture
      • Compensation & Benefits
      • Employee Evaluations
      • Health & Safety
      • Hiring & Firing
      • Women in Business
      • Outsourcing
      • Your Career
      • Operations
      • Mergers and Acquisitions
    • Operations
    • Mergers & Acquisitions
    • Business Resources
      • AI Dictionary
      • Forms and Agreements
      • Guides
      • Company Profiles
        • Business Directory
        • Create a Profile
        • Sample Profile
      • Business Terms Dictionary
      • Personal Finance Dictionary
      • Slideshows
      • Entrepreneur Profiles
      • Product Reviews
      • Video
    • About Us
      • Create Company Profile
      • Advertise
      • Email Newsletter
      • Contact Us
      • About Us
      • Terms of Use
      • Contribute Content
      • Intellectual Property
      • Privacy
      • Cookies