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SPECIALTY FINANCING

Mortgage insurance

Mortgage insurance affects loan costs and is designed to protect the lender, not the borrower.

A useful starting pointEvery mortgage has its own terms, costs, and qualification requirements. Use this overview to prepare questions and compare written loan estimates.

THE OVERVIEW

How this option works

Mortgage insurance may be required for certain mortgages, including many conventional loans with lower down payments and FHA or USDA financing. It generally protects the lender against loss if a borrower does not repay the loan; it does not insure the homeowner against missed payments.

The type, cost, payment timing, and cancellation rules depend on the loan program and terms. Include any upfront or monthly premium when comparing the total payment and overall cost of different loan options.

MAKE THE CONVERSATION COUNT

Questions to ask

Ask for the details in writing and compare the total cost, payment, and terms for your own scenario.

  • What type of mortgage insurance applies to each option?
  • How much does it cost over time, and what rules govern ending it?
  • How does a larger down payment change the total cost?
General information only. Program rules, rates, and lender availability can change. This page is not an offer, approval, or personal recommendation. Review current written terms with a qualified mortgage professional.

Official information: CFPB: What is mortgage insurance? ↗