Dictionary
mortgage insurance
insurance that allows mortgage lenders to recover part of their financial losses if a borrower defaults on a loan (=fails to pay the loan in full)
A new report recommends that lenders provide cheaper mortgage insurance.
Additional Notes
- Mortgage insurance can refer to private mortgage insurance (PMI), mortgage life insurance, or mortgage title insurance. What these have in common is an obligation to make the lender or property holder whole in the event of specific cases of loss.
- If mortgage insurance is required by the lender, the cost is usually built into the monthly payment made to the lender.