Mortgage Insurance Definition
An insurance contract that protects a mortgage lender against loss from a borrower's default on payments. This type of insurance allows a borrower to purchase a property with a low down payment. The insurance premium can either be paid by the lender or the borrower.
In case of lender's mortgage insurance the mortgage fee will be higher. Mortgage insurance includes private mortgage insurance, mortgage life insurance, or mortgage title insurance. Insurance is provided by a private mortgage insurer or by the Federal Housing Authority.