Understanding the types of mortgage insurance

Sam

There are 3 different types of insurance:

Private Mortgage Insurance
It is an insurance written by a private company, protecting the mortgage lender against loss that might result from a mortgage default. The cost of the insurance is generally paid by the borrower. It is required if the loan amount is more than 80% of the home's value. This charge adds approximately an extra half a percent onto the loan. Know More...
Title Insurance
It is an insurance policy, usually issued by a title company, which insures the homebuyer or the lender against loss, due to disputes over the ownership of a property and against errors in the title search. The purchaser and/or seller incur the cost of the policy. These policies are also available to protect lender's interests. Know More...
Hazard Insurance
It is an insurance whereby an insurer, for a premium, protects the insured against the cost of physical damages to property from natural disasters caused by fire, windstorms and other common hazards. It is also known as Homeowner's insurance. Know More...