 Sam
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Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
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 Posted: Wed Jun 23, 2004 4:23 am Post subject: Mortgage Indemnity Guarantee |
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The Mortgage Indemnity Guarantee is a one ''off fee'' that a lender pays to an insurance company, if a borrower borrows a high percentage of the purchase value of his/her property.
Mortgage indemnity guarantee is also known as:
- Mortgage guarantee insurance
- Higher advance fee
- High loan-to-value charge
- Mortgage risk payment
- High lending fee
- Loan to valuation fee
Key features of mortgage indemnity guarantee are as following:
- It acts as a form of mortgage insurance, only for the lender not the borrower.
- It is a type of insurance that gives a protection cover to the mortgage lender.
- This is an insurance premium charged by some lenders where a borrowers loan-to-value ratio (LTV) is greater than 75%.
- It is charged in case a borrower defaults on his mortgage repayments and the mortgage lender cannot recover its money.
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