How Much Insurance Do You Need for Your Mortgage?

There are two types of insurance that apply to a mortgage and the one you see most often is the lender’s mortgage insurance (LMI). It is sometimes known as Private Mortgage Insurance (PMI). While many borrowers think that this will protect them, it doesn’t. It is aimed directly at protecting the lender if you default on your payments.

While it does not seem right that you should have to pay lender’s insurance, that’s the way of the world and you can’t do anything about it.

This is the fourth podcast of our series on getting the best home mortgage.