Do you know what mortgage insurance is?
Many people confuse mortgage insurance with mortgage life insurance, mortgage disability insurance, or even homeowners’ insurance. These are all very different types of insurance – no wonder there is such confusion!
Mortgage insurance is generally required when the down payment on a home is less than 20%, and it is designed to protect the lender in the event of loan default.
The lower the down payment, the higher the risk for the lender, and this can mean a higher monthly mortgage insurance premium.
Depending on the specifics of your information, there are ways in which mortgage insurance can sometimes be avoided at the time of purchase, or dropped altogether at some point in the future.
We look forward to working with you. Please don’t hesitate to contact us if you have any questions. Remember, if you need help buying or selling a home, we can match you with one of my referral partners specifically suited to your needs.