Still paying mortgage on your home? You may want to consider having a Mortgage Life Insurance as a protection in case of death or permanent disability of the mortgagor. Another one is the Private Mortgage Insurance (PMI) to protect the lender in case the mortgagor defaults in his payments. This allows you to invest in a home with a lower down payment. Lenders generally require a PMI as a condition of obtaining a mortgage. For homeowners, the Homeowners Protection Act of 1998 has required the cancellation of PMI when the loan balance reaches a particular level. The government equivalent of a PMI is called a Mortgage Insurance Premium.

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