Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
All of M
Mortgage Insurance (MI)
Also called PMI (Private Mortgage Insurance). Mortgage Insurance (MI) is insurance, required by lenders, needed for a * mortgage loan with a low * down payment, usually a down payment less than 20 percent of the price of the home, or in a refinancing, when the amount financed is greater than 80 percent of the appraised value of the home. Mortgage Insurance protects lenders against loss if a borrower * defaults on the loan. Private mortgage insurance is provided by a private mortgage insurance company, is paid by the borrower (you), and is included in the borrowers mortgage payments.
Glossary For This Page
(In Alphabetical Order)
* Default
Failure to perform a legal obligation; a default includes failure to make the payments on a financial obligation, but may also be a failure to perform some action or service that is non monetary (not relating to money).
* Down payment
Paying a portion of the price of a home up front, usually between 3% to 20%, which is not borrowed.
* Mortgage Loan
A mortgage loan is money you borrow from a lender to finance the purchase of real estate, the land, house, and all other buildings.
|