Types of Mortgage Insurance Explained by Latest Rate State Article

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Rate State covers the two common types of insurance that are required by lenders for mortgages.

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Rate State also explains in their article what PMI stands for: Private Mortgage Insurance.

Insurance and mortgages are often package deal, explains Rate State in their latest article. Two types of insurance stick out in particular: PMI and homeowner's insurance. Without the first, only those with enough savings for a large down payment would be able to buy a house. According to Rate State, homeowner's insurance is important for both the lender and the borrower.

They explain very well in the article what homeowner's insurance is for, saying, “Homeowners insurance is an entirely different type of insurance and one that you should have for as long as you own the home, even if the mortgage is paid off. Homeowners insurance protects your investment in your property in the event that damage occurs to your home or to someone else while they are on your property. In the case of homeowners insurance, what you are paying for brings some benefit to you as well as the bank.”

Rate State also explains in their article what PMI stands for: Private Mortgage Insurance. PMI allows people to borrow that normally couldn't, by lowering the amount needed for a down payment. The increase risk that results for the lender is mitigated by this type of insurance, explains Rate State.

For this and other articles, check out Rate State's website.

About Rate State

Rate State helps consumers compare today’s mortgage rates through their online comparison tool to ensure they are getting the best rate for their home mortgage or refinance before making their next purchase. They provide consumers with access to the information they need in order to make a decision potentially saving thousands of dollars over the term of their next home loan.

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John Danton
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