What is mortgage insurance, and do I need it?

Mortgage insurance is a type of insurance that protects lenders in the event that a borrower defaults on their loan. It is usually required when a borrower makes a down payment of less than 20% of the purchase price of the home. Mortgage insurance can help protect lenders from losses if the borrower is unable to make their payments, and it can also help borrowers get approved for a loan who may not otherwise qualify. Mortgage insurance is typically required for borrowers who have a high loan-to-value ratio, meaning they are putting less than 20% down. It can also be required for borrowers with a lower credit score or a higher debt-to-income ratio. Whether or not you need mortgage insurance depends on your individual circumstances. If you are putting less than 20% down, you will likely need mortgage insurance. However, if you are putting 20% or more down, you may not need it. It is best to speak with a mortgage lender to determine if you need mortgage insurance.