The term Mortgage insurance may in some contexts refer to Private mortgage insurance (PMI), also known as Lenders mortgage insurance. Private mortgage insurance protects the lender instead of the borrower, although its premiums are payable by the borrower. This type of insurance is compulsory in certain jurisdictions for mortgages started with low down payments.
In the United States, subject to Homeowners Protection Act of 1998, a borrower who provides less than 20% down payment up front may be required to pay for private mortgage insurance until the outstanding mortgage is less than 80% of the value of the property.
Read more about this topic: Mortgage Life Insurance
Famous quotes containing the words private, mortgage and/or insurance:
“Today, the degradation of the inner life is symbolized by the fact that the only place sacred from interruption is the private toilet.”
—Lewis Mumford (1895–1990)
“The mortgage is still in our name but, increasingly, the house is theirs. One diaper, one vote.”
—Fred G. Gosman (20th century)
“The Republican convention, an event with the intellectual content of a Guns’n’Roses lyric attended by every ofay insurance broker in America who owns a pair of white shoes.”
—P.J. (Patrick Jake)