In the absolute worst case scenerio, which is unlikely, you could be asked to leave your home. The lenders coverage would pay off your home loan. If you did not choose the owners title you would walk away with $0.00. Equity is gone. So....i agree it rarely ever happens, am i willing to lose my entire equity for $200-300 policy...? It is a one time fee, and covers from the day of closing backwards in time. As you make payments the lenders exposure goes down while your exposure goes up.
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