Mortgage Loan Insurance Defined: How Does It Work?

Buying a home is often the biggest monetary commitment many people make in their lifetime. Nevertheless, not everybody has the ability to provide a big down payment, which can make it troublesome to secure a mortgage. This is where mortgage loan insurance can help. But what exactly is mortgage loan insurance, and the way 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…