when you get a u s federal housing administration fha backed mortgage you will be required to pay a qualified mortgage insurance premium which provides a similar type of insurance an mip has different rules including that everyone who has an fha mortgage must buy this type of insurance regardless of the size of their down payment 3
mortgage title insurancemortgage title insurance protects against loss in the event a sale is later invalidated because of a problem with the title mortgage title insurance protects a beneficiary against losses if it is determined at the time of the sale that someone other than the seller owns the property 4before mortgage closing a representative such as a lawyer or a title company employee performs a title search the process is designed to uncover any liens placed on the property that would prevent the owner from selling a title search also verifies that the real estate being sold belongs to the seller despite a thorough search it isn t hard to miss important pieces of evidence when information is not centralized mortgage protection life insuranceborrowers are often offered mortgage protection life insurance when they fill out paperwork to start a mortgage a borrower can decline this insurance when it is offered but you may be required to sign a series of forms and waivers verifying your decision this extra paperwork intends to prove you understand the risks associated with having a mortgage payouts for mortgage life insurance can be either declining term the payout drops as the mortgage balance drops or level although the latter costs more the recipient of the payments can be either the lender or the heirs of the borrower depending on the terms of the policy 