What is the difference between mortgage insurance and homeowner insurance?

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Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE”. This week, we answer the question: What is the difference between mortgage insurance and homeowner insurance?

This is a common mix-up, but they are in fact two very different things.   Mortgage Insurance is required on most loans that have less than 20% equity. This is a contract that insures the lender against loss caused by a mortgagor’s default on a mortgage. Mortgage insurance can be issued by a private company or by a government agency. Homeowners Insurance is the insurance that covers any loss or damages to your home, belongings or any other accidents that are outlined in your policy. These are separate from the mortgage all together, and are in place to protect both the borrower and the lender against damage to the property.

Thank you for tuning into this Joe Knows Mortgages MINUTE If you have any home loan related questions, we want to hear from you! So please comment down below! Also, please feel free to like and share this information with your family and friends. See you again next Monday!

Joe

Chief Operating Officer

Joe Harris is the COO of Morgan Financial, where he oversees operations, sales, and marketing to ensure a fast, enjoyable, and consistent mortgage experience. With more than 25 years in the industry and over $1 billion funded, Joe combines deep expertise with a passion for helping clients achieve homeownership. He is also dedicated to training and equipping loan officers with the tools and strategies they need to thrive in a competitive market.

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