Mortgage Loan Insurance

Not to be confused with Mortgage Life Insurance, Mortgage Loan Insurance is a policy taken out by a mortgage lender to protect against mortgage default by the home buyer. 

While the cost of this policy's premium is typically passed on by the lender to the home buyer, having this policy in place helps first time buyers or those with smaller down payments to be approved for mortgages without paying a much higher rate of interest than those buyers with larger down payments. 

Although a home buyer may pay the premium in a lump sum upfront, many choose to have it added to the total mortgage amount so that it can be blended into mortgage payments and paid over time.

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