There are a few important mortgage terms you should be familiar with. Today I’d like to highlight one phrase in particular: Mortgage insurance.
Mortgage insurance refers to coverage that protects the bank when buyers use a loan to purchase a property. This coverage ensures that the bank will be paid in the event of a foreclosure.
The cost of mortgage insurance will range from 0.03% to 1.15%, and it will be added into the price of your loan.
“Mortgage insurance ensures that the bank will be paid in the event of a foreclosure.”
On FHA loans, mortgage insurance will be paid up front and also throughout the entire life of the loan. For conventional loans, mortgage insurance will be waived after the buyer meets a 20% equity threshold.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
