Can private mortgage insurance be cancelled?
Q: What is private mortgage insurance? A: Private mortgage insurance is a type of guaranty that protects lenders against certain losses and costs resulting from foreclosure. Q: How can private mortgage insurance benefit homebuyers? A: Since the lender has some protection in the event that the borrower defaults on the loan, private mortgage insurance makes it more likely that lenders will provide loans to homebuyers who need to purchase a home with a lower down payment. With private mortgage insurance, a borrower can purchase a home with as little as 5% down. Q: If a borrower doesn’t have a 20 percent down payment, but has good credit and can meet the monthly mortgage payments, is the lender still likely to require mortgage insurance on the loan? A: Most likely, the lender would still require mortgage insurance. Most lenders require mortgage insurance for loans with a down payment under 20 percent. Q: Who pays for private mortgage insurance? A: The lender pays for private mortgage insur
