Private Mortgage Insurance
There are several types of mortgage insurance. The one that everybody complains about is private mortgage insurance (PMI). Homeowners with private mortgage insurance have to pay a hefty premium and the insurance doesn't even cover them. Yes, private mortgage insurance offers zero protection for the borrower. Borrowers mistakenly think that private mortgage insurance makes them special, but there are no private services offered with this kind of insurance. A lesser known type of mortgage insurance is the type that pays off your mortgage if you die. In other words, you pay a small premium for a small chance of dying. You could probably get better protection through a life insurance policy. The type of mortgage insurance most people carry is the type that ensures the lender in the event the borrower stops paying the mortgage. Nonsensicle, but private mortgage insurance ensures your lender. Why Do You Pay for Private Mortgage Insurance? Many borrowers take out private mortgage insuranc