So many people are thrilled to be able to purchase a home with less than 20% down payment, so that is is big plus!
Stefanie Cohen, PA, ABR, SFR
Prudential Florida Realty
Tchaka and James couldn't have said it better.
Option 1: You put less than 20 % down - You have to pay 1.75 % of Sales Price for the upfront Mortgage Insurance and 1.25 % of the Loan Amount (divided by 12 month) for the monthly Mortgage Insurance.
Option 2: you put 20 % down and you do not have to pay any Mortgage Insurance.
Please feel free to contact me at your earliest convenience, if I may be of any service to you.
Lic. Loan Originator
it's not something you have the option to add to your mortgage if you want.
My input: if you have enough of a downpayment to avoid it, then do so. No need to pay extra to someone else.
Keller Williams Realty Professionals
The con is that it costs money... and if you can afford to get a conventional mortgage, right now, you can actually get a lower interest rate, and save 1000s over the cost of the loan.
There are two types of MORTGAGE INSURANCE:
There is PMI which is the Insurance that YOU have to pay for, that protects the LENDER if you default. This is generally required if you have a loan with less than 20% equity.
You may also get your own insurance, through a regular Life Insurance Company, that will pay off your mortgage in the event of death or disablement.
Good luck and may God bless
Wish I had better news! Actually, there is a good Pro for you, once you've paid down the principal then it will go away for good... so that's a positive!