I am about to apply for mortgage-I am buying a house-and it is just that my lender insists on loan insurance regarding this mortgage and the reason is the fact that my down payment would be less than 20 of the total price. I am about to sign the mortgage contract tomorrow along with this mortgage loan insurance details so I wonder if you can explain to me something more about loan insurance?
Whenever the lender asks for the mortgage loan insurance he/she actually would like to get protected in the case of mortgage default which is very common in situation of only 20 or even less down payment. And also along with this mortgage loan insurance some insurance premiums are to be paid and its amounts varies usually between 0.65 and 2.75 depending on the amount of the mortgage loan used for purchasing the house.
