There are many different facets to the home buying process and mortgage insurance is definitely one you need to understand. If you want to buy a home, then mortgage insurance is a term you have probably heard thrown around by lenders, your real estate agent, and so forth, but what does it mean and why do you need it?
Let’s start with the basics and go over some of the general terms that you will run into when you are navigating the wide world of real estate insurance.
1. MI or PMI: MI is short for Mortgage Insurance and PMI is short for Private Mortgage Insurance. We’ll talk more about these later.
2. FHA: This is short for Federal Housing Administration. This is a government agency that governs all things real estate. From construction to…