Private Mortgage Insurance
What is private mortgage insurance? Does it matter? Some of the most common questions we get in the industry – this series walks buyers through private mortgage insurance and what it means for them. Click here to access the series.
What is Mortgage Insurance?
Mortgage insurance is a requirement for borrowers who elect to put less than 20% down towards the purchase of their home. Mortgage insurance protects the lender in case the borrower is unable to make their payment. Government-backed loans require mortgage insurance regardless of down payment amount, but it is only required for conventional loans until you reach 20% of the total value of the loan.
How do I pay mortgage insurance?
Your mortgage insurance will be combined into your monthly mortgage payment. However, some people choose to pay their annual mortgage insurance premium up front in which case you bring a check to closing. Talk to your lender to determine which option may be best for you!