Mortgage Loan Insurance Defined: How Does It Work?

Buying a home is usually the most important financial commitment many individuals make in their lifetime. Nevertheless, not everyone has the ability to provide a big down payment, which can make it tough to secure a mortgage. This is where mortgage loan insurance can help. But what precisely is mortgage loan insurance, and how does it work? Let’s break it down.What Is Mortgage Loan Insurance?Mortgage loan insurance, also known as private mortgage insurance (PMI) in the United States or mortgage default insurance in Canada, is a type of insurance that protects lenders in the event that the borrower defaults on…