Mortgage Insurance Policy Premium

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The premium paid on an insurance policy that provides coverage to a lender in the event that a borrower defaults on a mortgage. This ensures that the lender does not incur a loss if the borrower is unable to repay the loan. While the lender pays the mortgage insurance premium, it generally passes on payment to the borrower, either by requiring payment in the closing costs or by rolling it into the monthly mortgage payment. See also: Mortgage Insurance.

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