Three Ways To Pay For Mortgage Insurance


Three Ways To Pay For Mortgage Insurance
By Scott Rogers • January 28, 2020
George Mason Mortgage has an excellent overview of the three main ways to pay for mortgage insurance. But before we go there, what is mortgage insurance? If your down payment is less than 20% of the purchase price, your lender may require that you pay for mortgage insurance to cover their greater risk because of your smaller down payment. Two quick points... Generally, the smaller the down payment, the higher the cost of your mortgage insurance. Generally, the lower your credit scores, the higher the cost of your mortgage insurance. And now, the three main ways to pay for this mortgage insurance... Pay Monthly - Your mortgage payment will include principal, interest, taxes, homeowners insurance and mortgage insurance. The mortgage insurance portion of the payment will disappear after you get to a certain amount of equity in your home. Pay Up Front - You'll pay for the mortgage insurance up front, at closing. Thus, your monthly mortgage payment will not include an additional mortgage insurance premium. Lender Pays - Your pay a slightly higher mortgage interest rate and in exchange, your lender pays the mortgage insurance for you. Read much more about mortgage insurance in this helpful document from George Mason Mortgage. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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