PMI, Title Insurance and Hazard Insurance
Private Mortgage Insurance (PMI)
A lender will require you to purchase mortgage insurance if you make a down payment of less than 20% of the market value of the home. There are different types of insurance available which often affect the type of mortgage loans you obtain.
Title insurance will be included in the closing costs to insure that no other party can claim title to your property.
This insurance is a contract that protects you from any financial losses on your property that might result because of fire, flood, or any other “hazards.”