Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE.” This week, we answer the question:
What’s the difference between Homeowners Insurance and Mortgage Insurance?
Homeowners insurance protects you, the homeowner, from damages to your home or loss, such as in cases of natural disaster or theft. Mortgage insurance protects the lender against any loss, should you default on your home loan.
You will be required to have homeowners insurance in order to obtain a mortgage! However, mortgage insurance is typically only required when putting less than 20% down for conventional loans. (Requirements vary depending on the loan program you qualify for and choose).
Everyone’s situation differs depending on your individual qualifications and mortgage needs, as well as loan program, so contact us today to get started on your home loan quote with our team of mortgage experts you can trust!