Don’t want mortgage insurance?
Avoiding mortgage insurance is possible by making a down payment of at least twenty percent when purchasing a home. However, it’s important to note that not all loans mandate this level of down payment.
Mortgage insurance serves to safeguard the lender in the event that you are unable to meet your mortgage payments in the future. It should not be confused with homeowner’s insurance, which provides protection in case of damage or incidents affecting your home that require financial coverage.
Lower monthly payments
Opting out of mortgage insurance can lead to notable savings on your monthly mortgage payment, allowing you to keep more of your hard-earned money throughout the loan’s duration.
While certain loans necessitate continuous mortgage insurance payments, there are alternative loan options available that may exempt you from carrying mortgage insurance altogether, giving you greater financial flexibility. Consult with your Loan Officer about your options.
MI Fees
Mortgage insurance comes with its own set of costs that homeowners should be aware of. Typically, mortgage insurance premiums are added to the monthly mortgage payment, increasing the overall monthly housing expense. The actual cost can vary depending on factors such as the size of the down payment, the loan amount, and the type of mortgage insurance required. While it can provide access to homeownership with a smaller down payment, it’s important to recognize that this added expense can significantly impact a homeowner’s budget over the life of the loan.
