Mortgage insurance (MI) is insurance that protects lenders against some or most of the losses that result from defaults on home mortgages. It’s usually required on all government insured loans and on conventional loans with a downpayment of less than 20%. In most cases, mortgage insurance can be dropped after the LTV declines to under 78%. Information regarding the cancellation of any MI on your loan will be disclosed to you at application and again at closing.

Posted in: Terminology – The Language of Mortgage Lending