Mortgage Loan Insurance
Emirateslifeinsurance offers affordable life insurance, mortgage insurance to cover liabilities arising from the ownership of any property – it can be assigned to any bank offering the loan. It is an insurance policy which compensates investors for losses due to the default of a mortgage loan. It can be either private or public depending up on the insurer.
Mortgage insurance policy protects a mortgage lender in the event that the borrower defaults on payments, dies, or is otherwise unable to meet the contractual obligations of the mortgage.
If the premium on a PMI policy is paid by the lender and not the borrower, then it is referred as private mortgage insurance.
Mortgage insurance is a financial guaranty for the lender that will help to reduce or eliminate a loss in the case of a default by the borrower, and it is almost universally required on loans.