Your residence is important to you and your family, so you like to make everything that you are able to guard it. Just as you want to care for your investment, the bank need to protect the investment that it has made with lending out you money. That is where Mortgage Insurance pulls in.
First time buyers who were getting their first mortgages were traditionally the golden goose for banks because once a bank had their business they usually had it for a long time and they made a lot of money off of them. However, first time buyers are now getting to be less and less important for banks because they are traditionally more risky than buyers who have established credit. So, how are first time buyers affected by the down turn in the economy?