Frequently Asked Questions

The Basics

How Mortgage Insurance Can Help You

Common Questions About Loan Approval

Cancellations & Refunds

What is private mortgage insurance?    back to top
Private mortgage insurance can help you buy a house with a low down payment --- less than 20%. If you stop making house payments for any reason, mortgage insurance protects your lender from financial loss. Because lenders have this insurance, they are able to offer more mortgage loans with low down payments. Click here for Benefits of MI Calculator

How is mortgage insurance different from other types of home insurance?    back to top
You're probably familiar with homeowner's insurance, which protects a homeowner if his or her house and its contents suffer from unforeseen occurrences such as weather damage or theft. Similarly, hazard insurance is designed to compensate a homeowner for any losses that occur due to specified hazards, such as fire. Mortgage life insurance provides financial protection in case of the homeowner's death. Mortgage insurance - Genworth's product - pays lenders for part of their financial losses when borrowers fail to repay the loan. Mortgage insurance makes it possible to buy a home with a low down payment or, in some cases, no down payment. Click here for Benefits of MI Calculator

Why do I need mortgage insurance?    back to top
Unfortunately, future circumstances are unpredictable, and loan defaults sometimes occur unexpectedly. Because lenders can lose a great deal of money on an unpaid mortgage, mortgage insurance is generally required for all loans with less than a 20% down payment, even if the borrower has a good credit rating.

How much does mortgage insurance cost, and how are premiums paid?    back to top
Private mortgage insurance amounts to only a small fraction of your total housing cost, typically about 7/10 of one percent of the loan amount per year. The amount of mortgage insurance coverage required varies by lender and by loan type; therefore, contact your lender for a specific price quote based upon the details of your loan.

Borrowers usually pay the premiums to their lenders as part of their monthly mortgage loan payment. Often the first premium is paid when the mortgage loan closes, and thereafter the premium may be a small part of the monthly mortgage payment. Genworth offers a variety of mortgage insurance premium payment plans that are designed for maximum affordability and convenience.

What types of mortgage loans does Genworth cover?    back to top
Our standard plan covers virtually all of the popular mortgages available today:

  • 15- or 30-year mortgages
  • First purchases
  • Fixed rate loans
  • Adjustable rate loans
  • Refinances

If you're not sure whether a particular mortgage type is eligible for standard coverage, just ask your lender.

Can I choose the mortgage insurer?    back to top
Yes. Your lender will honor your request for Genworth mortgage insurance or give you information about other options.

How does mortgage insurance help homebuyers?    back to top
When you have mortgage insurance, you can:

  • Buy more house. Mortgage insurance allows qualifying homebuyers to buy a more expensive home with a much lower down payment.
  • Buy sooner. Since less money is required at closing, many people can realize their dream of buying a home sooner - and begin building equity instead of paying rent.
  • Realize tax advantages. A smaller down payment usually means that the homebuyer can claim more deductible interest.
  • Invest in your next house. Mortgage insurance can be used to move upward into a larger, more expensive home. Click here for Benefits of MI Calculator

Do I really benefit by buying a home now with mortgage insurance instead of waiting to save for a larger down payment?    back to top
Yes, for several reasons. A low-down-payment loan lets you put your money to work now instead of "losing" money by paying rent. You can begin to build equity in a home that is likely to increase over time. Second, because mortgage interest is tax deductible, a low down payment mortgage loan increases your income tax deductions. Finally, as home values continue to rise, the home of your dreams may be even further out of reach by the time you save a large down payment.

Can mortgage insurance help me if I have already saved a 20% down payment?    back to top
Yes. Given today's low interest rates and increasing tax rates, a low down payment can be a smart option even if you have the money to make a 20 to 25% down payment. First, you benefit from a bigger tax write-off from mortgage interest payments. Second, you can choose to spend the money you don't use on options that may be more attractive to you, such as investments with higher returns, home improvements, family vacations, or your children's education.

Does mortgage insurance affect my closing costs?    back to top
Under some premium plans, mortgage insurance adds to your closing costs, but that amount is more than offset by the opportunity it gives you to spend less of your cash on a down payment. For those who qualify, some mortgage insurance products may even allow you to qualify for a zero down payment loan! In contrast, on a $150,000 loan with a 20% down payment, you would be required to make a deposit of $30,000 or more.

Is there any way I can lower my mortgage insurance costs at closing?    back to top
In addition to standard coverage, Genworth offers several options to help make the home purchase more affordable and to meet any special needs you might have.

Monthly PremiumSM
This plan requires just one month of mortgage insurance premium at closing. Monthly Premium substantially reduces your total closing costs, and makes getting into your home more affordable.

Zero Monthly
An enhancement to Monthly Premium, Zero Monthly allows you to pay no mortgage insurance premium at closing. Coverage is effective immediately, and the first monthly insurance premium is due after the first mortgage payment.

Level Annual EASY1®
This plan gives you the certainty of paying the same annual premium for mortgage insurance each year - and it reduces closing costs compared to standard annual plans.

Standard Annual
Using this option, you pay a higher first-year premium than with our level annual plan, but benefit from reduced premiums afterward.

Single Premium
Using the single premium payment option, you can finance your mortgage insurance premium into your loan amount. Thus is an ideal alternative to 80/10/10 or "piggyback" loans.

What are the most important things for me to know about mortgage insurance?    back to top

  • Mortgage insurance allows you to purchase a home with a lower down payment.
  • There is no extra effort or paperwork required to obtain mortgage insurance.
  • If you have the cash for a 20% or 25% down payment, mortgage insurance gives you the option of spending less of that cash on the down payment and allows you to decide how to best use your funds.

Do I have to fill out additional paperwork to get mortgage insurance?    back to top
No. Your lender simply copies and sends Genworth the necessary documents from your loan file, with no extra paperwork required from you.

How does Genworth decide whether to insure a loan?    back to top
Generally, we evaluate your loan application the same way a mortgage lender does - by looking at your credit and employment history, the appraised value of your home, and making sure you have enough money on hand to cover your down payment and closing costs. Our mortgage insurance decision is independent of your lender's decision to either approve or deny your mortgage loan.

Is it necessary to check my credit?    back to top
As part of our underwriting process, we may order an up-to-date credit report to assess your debt situation and to see how well you've met obligations in the past.

How long does it take to approve mortgage insurance for my loan?    back to top
Genworth can usually give your lender an answer on mortgage insurance applications within 24 hours.

Can I cancel the mortgage insurance for my loan?    back to top
Check with your lender for specifics regarding cancellation. If your loan closed on or after July 29, 1999, a new federal law (the Homeowners Protection Act of 1998) ensures that borrower paid private mortgage insurance can be cancelled when certain conditions are met. Click here for the Cancellation Calculator

For more information about Homeowners Protection Act, click here.

If the mortgage insurance policy is canceled, will I receive a refund?    back to top
Many mortgage insurance policies include provisions for refunds, but some lenders select non-refundable policies in order to reduce closing costs for homebuyers. Refunds are not available under non-refundable policies, unless cancelled under the Homeowners Protection Act. Check with your lender to determine whether you will receive a refund.