   
|
|
|
|
Mortgage Insurance
|
Mortgage insurance is insurance covering the lender or other holder against non-payment of the mortgage loan by the borrower. The government can provide mortgage insurance, such as on an FHA or VA loan. Fannie Mae and Freddie Mac are also important providers of mortgage insurance. Private mortgage insurance, as opposed to government insurance, is often called PMI. The premiums for mortgage insurance are generally paid by the borrower as part of the monthly payment on the mortgage. Mortgage insurance is generally required before a mortgage loan can be added to a pool of loans for creation of a mortgage-backed security that can be sold to investors in the secondary mortgage market. Prior to the advent of mortgage insurance, far fewer families could qualify for a mortgage, and homeownership was much lower in the US than it is today.
Rate this mortgage insurance definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
