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Understanding Insurance
Listed below are some typical insurance products associated with mortgage loans.
Private Mortgage Insurance
Insurance written by a private company protecting the mortgage lender against financial loss occasioned by a borrower defaulting on the mortgage.
FHA Mortgage Insurance
An undertaking by FHA to insure the lender against loss arising from a default by the borrower.
VA Funding Fee
A fee based on a percentage of your loan amount. This fee is paid by the Veteran and/or third party, directly to the Veterans Administration, to guarantee a specified portion of the loan, should the borrower go into default.
Flood Insurance
Protection against flood loss through the 1973 Flood Disaster Protection Act.
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