Paying For Private Mortgage Insurance

Dear Ali, 

Did you know that it's a myth that a 20% down payment is required for a home purchase? There are loan programs with lower down payment requirements to fit a variety of budgets.

If you do put down less than 20%, you will need private mortgage insurance (PMI). There are a few ways to pay for PMI:

1. Monthly premiums: In many cases, lenders roll PMI into your monthly mortgage payment as a monthly premium. 

2. One-time, up-front premium paid at closing: If you make an up-front payment, then move or refinance, you may not be required to receive a refund of the premium. 

3. Both up-front and monthly premiums: In some circumstances, you may pay both up-front and monthly premiums.

If you don’t have a lot of cash saved for a down payment, familiarizing yourself with PMI payment options is an important step. You’re not alone though, I'm here to chat anytime!

Best regards, 

Anna Smith