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Michelle Said:

two people on a mortgage paying into mortgage insurance, one person dies what happens next?

We Answered:

It doesn't matter who's actually PAYING for the insurance.

You would have to read the policy, to see what's covered, under which circumstances. It's possible that your mother ALSO has to die before they pay out; or it's possible that the house will b e paid off.

You can't do anything. Your mom has to contact the insurance company, and file the claim.

Anita Said:

When do loans ( FHA and Conventional) require mortgage insurance?

We Answered:

VA does not- but does require a "funding fee" which may serve the same purpose. FHA charges a large one and since the loan is usually pretty high risk they need that insurance. Conventional conforming requires one on almost all loans that have less than 20% down. Non conforming loans have a whole set of their own rules.

The costs will be there one way or another unless you are putting a substantial amount down.