Mortgage loan insurance protects the mortgage lender in case you’re not able to make your mortgage payments. It doesn’t protect you. Mortgage loan insurance is also sometimes called mortgage default insurance.
If your down payment is less than 20% of the price of your home, you’ll need to purchase mortgage loan insurance.
If you’re self-employed or have a poor credit history, you may also be required to get mortgage loan insurance, even if you have a 20% down payment.
Mortgage loan insurance isn’t available, if: