Define: Insured Mortgage

UK Accounting Glossary

Definition: Insured Mortgage



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Full Definition of Insured Mortgage


An insured mortgage is a mortgage with an insurance policy that insures the lender against the default of the borrower. In the US, the insured mortgage is generally for residential property. In lieu of having an insured mortgage, the lender will usually demand a more exacting appraisal, a higher LTV, and other measures for these properties. The insured mortgage may be insured by a government agency, such as the FHA or VA, or a private sector entity, such as Fannie Mae or Freddie Mac. Often the insured mortgage is combined with several others that are very similar to issue a mortgage-backed security. Before the advent of the insured mortgage, many households were unable to obtain home financing. Typically, the borrower pays the premium along with the monthly payment for the insured mortgage.


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https://payrollheaven.com/define/insured-mortgage/
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Insured Mortgage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 04, 2020 https://payrollheaven.com/define/insured-mortgage/.
Chicago Manual of Style (CMS):
Insured Mortgage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/insured-mortgage/ (accessed: April 04, 2020).
American Psychological Association (APA):
Insured Mortgage. PayrollHeaven.com. Retrieved April 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/insured-mortgage/

Definition Sources


Definitions for Insured Mortgage are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020