That is not an automatic requirement. Mortgage insurance will/may be required on the first position loan that has a beginning balance above 80% of the purchase price. If your second property will be paid completely with the proceeds from the equity line, then it will be like a cash sale. There will be no mortgage on the second property and therefore no mortgage insurance. Even if your second property will have a separate, first mortgage the equity loan will have proccurred cash to apply to the purchase. The first mortgage of 80% or less will not require mortgage insurance.The first property by which you secured the equity line will also not ordinarily require MI as a result of the equity line because the lender will not allow the loan to exceed 80% of the value of the property in most cases. In the event that they allow a 90% loan, they will do the additional because you have good credit.If, by mortgage insurance, you mean that type of life insurance that pays your balance upon your death, the answer is no. No lender can require that. You can obtain a policy like that if you choose and if you qualify.