Mortgage Protection Insurance

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Desired Loan Amount
Property Value
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Mortgage Protection Insurance

Mortgage protection insurance is required if the buyer puts up less than 20% equity on the property. The insurance is designed to protect the mortgage lender in the event that the mortgage is foreclosed. It is also known as Private Mortgage Insurance (PMI). The premium paid by the borrower is based on the loan to value of the property (LTV). The higher the LTV, the greater the insurance premiums charged. Once the homeowner’s equity on the property reaches 20%, the borrower is no longer required to pay mortgage protection insurance. To avoid paying PMI, homebuyers can take out a second mortgage.


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