THE OVERVIEW
How this option works
Mortgage insurance may be required for certain mortgages, including many conventional loans with lower down payments and FHA or USDA financing. It generally protects the lender against loss if a borrower does not repay the loan; it does not insure the homeowner against missed payments.
The type, cost, payment timing, and cancellation rules depend on the loan program and terms. Include any upfront or monthly premium when comparing the total payment and overall cost of different loan options.