The private mortgage insurance protects the creditor from pecuniary losses if the house owner stops to do mortgage payments. Creditors usually demand the mortgage insurance on low mortgage loans of advance payment (less than 20 %) for protection when the house owner not in a condition to make monthly payments. Though cost of the mortgage insurance is paid by the buyer of real estate, the mortgage insurer works directly with the mortgage creditor. The mortgage insurance is accessible to commercial banks, mortgage bankers, both savings and loans, and all from which is offered by mortgage loans to buyers of real estate.
