What is mortgage insurance?


By Saul F. Rosenthal

Special to The PREVIEW

Q: What is mortgage insurance and why would I need it?

A: Most people need to borrow money in order to purchase a home and so they take what is called a mortgage. The borrower then repays the loan over a period of years, typically on a monthly basis. Mortgage insurance is an additional charge on your monthly house payment (or a one-time up front payment) that may be required by banks, government lenders or mortgage lending companies (the lenders) for certain types of loans. It is designed to protect the lenders in the event you are unable to keep up with your monthly loan payments.

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