Mortgage Insurance Law

Mortgage insurance law requires homebuyers to purchase insurance when they have a mortgage with a down payment of less than 20%. This insurance protects the lender in case the borrower defaults on the loan. It’s typically added to monthly mortgage payments. If the borrower fails to repay the loan, the insurance helps cover the lender’s losses. Understanding this law is crucial for homeowners, as it impacts their monthly costs and financial obligations. Ultimately, mortgage insurance helps make homeownership more accessible while protecting lenders' investments.