Mortgage insurance basics

Your borrowers scrimped, saved, searched for and found their version of the American Dream. Financing with mortgage insurance made that dream come true sooner.

Homeownership made possible

Mortgage insurance is generally required on mortgages whose down payments are less than 20% of the property value. Historically, making a 20% down payment has been a difficult hurdle to clear for many homebuyers. Mortgage insurance was created to reduce that barrier and help more people afford homeownership.

Understand mortgage insurance

Mortgage insurance, MI, private MI, PMI — whatever you call it, mortgage insurance is a financial guaranty that reduces the loss to the lender or investor in the event the borrowers do not repay their mortgage.

Using mortgage insurance to reduce risk enhances the quality of the mortgage as an asset. It becomes a safer investment for lenders who keep their loans in portfolio and for investors looking for secure purchases. Even if the borrowers fail to repay, the lender/investor will not suffer a complete loss but, rather, share the loss with the mortgage insurer.

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    What is mortgage insurance?

    If you don’t have a lot of experience with mortgages or the mortgage industry, read up on how MI works. 

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    Ordering, activating and cancelling MI

    Whether you're a mortgage industry newbie or a seasoned veteran, it's always a good idea to brush up on the basics.

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    MGIC MI and FCRA

    What your borrowers need to know about MGIC mortgage insurance and the Fair Credit Reporting Act (FCRA).

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    Brush up on the basics

    Read about ordering, activating, and cancelling mortgage insurance.

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