What is mortgage insurance and how does it work?
Mortgage insurance lowers the risk to the lender making a loan for you. It helps you qualify for a loan that you might not otherwise be able to get.
Typically, borrowers making a down payment of less than 20 percent of the purchase price of a home on a conventional loan will need to pay for mortgage insurance. Mortgage insurance is also required on FHA and USDA loans.
Mortgage insurance increases the cost of the loan. If you are required to pay mortgage insurance, it will be included in your total monthly payment on a conventional loan made to your lender. On a FHA or USDA there is an upfront fee and it will also be included in your monthly payment.
Have more questions about mortgage insurance and buying a home?
Visit our website to “Chat with a Lender” tomorrow from 2-4pm.
Different types of loans require different types of mortgage insurance contact a Lender to learn more.
Mika Baker NMLS# 487274
Kourtney Hanger NMLS #1627278
Janice Hoxsey NMLS # 1233328
Justin Johnson NMLS # 1735171