Today's homebuyers have an incredible number of options at their fingertips when it comes to selecting mortgage insurance. However, not all mortgage insurance options are created equal. Your first step should involve asking questions and researching the options, and then deciding what is best for your personal situation.
First things first: What is Mortgage Insurance?
Mortgage insurance is a financial guaranty that insures lenders against loss in case a borrower defaults on a mortgage. Lenders usually require homebuyers to make a down payment of at least 20% of the home’s purchase price, which can mean years of patient saving – often hard for anxious borrowers. With mortgage insurance, homebuyers can get in a home faster with a lower down payment.