What is Lenders Mortgage Insurance and When Home Refinancing Do I Require It?
Questions often asked, are “Do I need Mortgage Insurance for Home Refinancing?” and “What is Mortgage Insurance?”
In this article I will clarify what Lenders Mortgage Insurance is, how it works and influences you when Home Refinancing.
The function of Lenders Mortgage Insurance (LMI) is to protect the home loan lender from suffering a loss of money in the event of a borrower defaulting on their mortgage, resulting in foreclosure and a ensuing mortgagee sale. If the proceeds from the mortgagee sale are insufficient to pay back the home loan in full, LMI will pick up the shortfall for the home loan lending institution.