This should not be confused with insurance that steps in to cover your mortgage payments if you are disabled or otherwise unable to work. This disability insurance covers you, not the lender. Typically, after closing on your home, you will get a number of solicitations for disability insurance. Shop around if you are interested.

The premiums for mortgage insurance are based on the loan to value ratio (the loan amount divided by the purchase price) and typically range from 0.34% to 1.2% of the loan amount. The type of loan and type of property will also affect the rate; mortgage insurance on adjustable rate mortgages costs more than on fixed loans.