Mortgage insurance, also known as PMI, is insurance that protects the lender from losses when a mortgage with a low down payment defaults.
Closing costs are money paid by the borrower in connection with the closing of a mortgage loan.
Depending on the specific loan this may include an origination fee, discount points, appraisal, credit report, title insurance, attorney's fees, survey and prepaid items such as tax and insurance payments. Closing costs are different from case to case. You will also need to provide evidence of payment in full of the policy premium for at least one year. Sovereign Bank is required to obtain a flood certification on all loans secured by residential real estate. A flood certification indicates if the subject property is located within a designated flood zone.