Definition
Insurance protecting the lender against borrower default, required on low-down-payment loans.
Example
Conventional PMI cancels at 78% LTV; FHA mortgage insurance often lasts the loan's life.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Mortgage Insurance mean in real estate?
Insurance protecting the lender against borrower default, required on low-down-payment loans.
How is Mortgage Insurance used in practice?
Conventional PMI cancels at 78% LTV; FHA mortgage insurance often lasts the loan's life.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.