Credit and Qualification
Mortgage Insurance Explained
Published 2026-07-31 · Last reviewed 2026-07-31 · Reviewed by Jim Lyddon, NMLS #2573609
Mortgage insurance protects the lender against loss, not the borrower, and it is generally required when the down payment is below a program threshold. Conventional mortgage insurance can typically be removed at defined equity levels, while FHA insurance frequently remains for the life of the loan.
What to know
- It enables lower down payments rather than existing to penalize you.
- Conventional structures include monthly, single-premium and lender-paid options.
- FHA charges both an upfront and an annual premium.
- Compare structures — the cheapest monthly option is not always the cheapest overall.
How Jim approaches this
Bring your specific numbers. General education gets you oriented, but the decision only becomes clear when it is run against your income, your cash position, the property you are considering and how long you plan to keep the loan. That conversation is free and does not require an application.
The information on this website is provided for general education only and does not constitute financial, tax or legal advice. Loan programs, guidelines and availability are subject to change and to borrower and property qualification.
JHL Mortgage, Inc. is an Equal Housing Opportunity lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.