What is Mortgage Insurance: Overview

Ans. Mortgage insurance in India may have different cancellation policies depending on the insurance provider. Some mortgage insurance policies can be cancelled once the borrower reaches a specific level of equity in the property, typically around 20%. However, it is essential to review the terms and conditions of the mortgage insurance policy to understand the cancellation and termination provisions.

Ans. While mortgage insurance is not mandatory in India, lenders may require borrowers to obtain it, particularly for loans with higher loan-to-value ratios. The decision to purchase mortgage insurance ultimately depends on the lender’s requirements and the borrower’s specific circumstances.

Ans. For conventional loans, mortgage insurance payments are required until you achieve 20% equity in the home. For FHA loans, payments continue until the mortgage is paid off or refinanced.

Ans.  Mortgage insurance protects the lender from financial loss if borrowers default on the loan. It does not protect borrowers from losing their homes or cover their personal payments.