I'm in the market for a house and read about mortgage insurance. Is it good to have and what the difference between that and homeowner's insurance?

Mortgage insurance insures the lender if you default on your mortgage. It offers no protection to you and essentially you are throwing your money away. It is now, finally, tax deductible. You should purchase the house with a first and second mortgage to avoid mortgage insurance. You would then have 80% of the purchase price on the first loan and the remaining 20% on the second loan. Therefore all of the money you pay per month is going toward your house instead of making the lender feel more comfortable about lending you money. You should email me and I can help you find the right program to purchase this home.