Primary Mortgage Insurance
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Primary Mortgage Insurance

Primary Mortgage Insurance is typically used when a lender has limitations on individual mortgage loans from a regulatory or internal risk management standpoint. With primary mortgage insurance, the frequently chosen coverages are "standard coverage" or "amortising". Standard Coverage insures either a percentage of the loan amount or a fixed exposure amount. This option provides the most coverage over the life of the loan. Amortising coverage insures the portion of the loan above a certain amount. Effective coverage declines over time as the loan decreases through principal payments by the borrower. This option can be a very cost-effective solution to internal or regulatory risk requirements.

 

 

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