What is Mortgage Default Insurance?
Mortgage Default Insurance is a great way for homebuyers to achieve the dream of home ownership without a large down payment.
There are two types of mortgage options: conventional mortgages which require a minimum 20% down payment and high ratio mortgages which are designed for people who do not have the 20% down payment. High ratio mortgages require mortgage default insurance. This insurance provides the lender with the flexibility to offer homebuyers the same competitive interest rates available to those with a larger down payment. This insurance should not be mistaken for Mortgage Life Insurance which protects the homeowner in the event of death, sickness, unemployment or disability.