What is an Insured Mortgage?

Whenever a person applies for a mortgage loan he has the option to choose an insurance for the mortgage. This means that if he happens to default on his payments then the insurer will pay for him the missed payment or the agreed amount. There are two types of insurance agencies you could apply for a federal one or a private mortgage insurance. When a person applies for an insured mortgage he has to pay a premium to the insurer and also the payments for the monthly charges on the insured mortgage.