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Mortgage Insurance
Updated
January 19, 2023
Mortgage insurance reduces the lender's risk of providing a loan to you, allowing you to qualify for a loan that you would not have been able to acquire otherwise. Borrowers who make a down payment of less than 20% of the buying price of a property will often be required to pay mortgage insurance. Mortgage insurance is usually needed on FHA and USDA loans as well. Mortgage insurance reduces the lender's risk of providing a loan to you, allowing you to qualify for a loan that you would not have been able to acquire otherwise. However, it raises the interest rate on your loan. If you must pay mortgage insurance, it will include your total monthly payment to your lender, closing expenses, or both.
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