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Answers (3)
- Mike Bjork, "MortgagePlannerMike"
- Contributions:346
Statistics show that mortgage defaults are higher on financing greater than 80%, so the Lenders require the Borrowers to acquire Mortgage Insurance (MI) on loan amounts to protect (insure them), if there's a default on the Loan.
- wetdawgs
- Contributions:26795
It isn't important for you, per se, but it protects the lenders.
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
It's important if you don't want to put 20% down to purchase the home - because that's the only way a lender will make the loan.
Unfortunately "mortgage insurance" does nothing for you personally, other than allow you to buy with a low down payment. If you default on the payments, the mortgage insurance will reimburse your lender for their loss.
Unfortunately "mortgage insurance" does nothing for you personally, other than allow you to buy with a low down payment. If you default on the payments, the mortgage insurance will reimburse your lender for their loss.
Ask our community...WHY IS IT IMPORTANT TO HAVE MORTGAGE INSURANCE
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