The full name of mortgage insurance is "personal mortgage commodity housing insurance", which is a kind of guarantee insurance. The specific steps are as follows: the real estate agent sells the commercial house to the owner who needs a loan, and the owner applies for a loan from the bank. According to the regulations of the bank, when the owner mortgages the house he has purchased, he must purchase mortgage insurance from the insurance company, with the bank as the first beneficiary of the insurance. Finally, banks lend money through mortgage agreements and mortgage insurance.

After the development in recent years, mortgage insurance includes home insurance and repayment guarantee insurance. Family property insurance is similar to ordinary family property insurance, which specifically covers property losses caused by unexpected risks; Repayment guarantee insurance refers to the fact that the insured dies or is disabled due to an unexpected safety accident during the insurance period, and loses all or part of the repayment level, resulting in the repayment obligation promised in the personal housing mortgage loan contract being unable to be fulfilled or fully fulfilled for three months. The insurer shall bear all or part of the repayment obligation of the loan balance under the personal housing mortgage loan contract when the insured is out of danger. To sum up, the insurance liability of mortgage insurance is that the insurance company will replace the loan when the insured house is damaged due to natural disasters or accidents, or when the mortgagor loses his financial resources due to unexpected safety accidents and is unable to repay the loan.

Therefore, it is necessary for buyers to take out mortgage insurance when buying a house, so that when we unfortunately encounter unexpected losses in the repayment level, the insurance company will bear all or part of the obligation of the loan balance to prevent our own house from being taken back by the bank.