Benefits of Mortgage Insurance
Maybe your dream home just came on the market. Or maybe you’re just ready to stop renting. Whatever the reason, if you’re looking to buy and don’t have enough for a 20% down payment, mortgage insurance can be the solution.
Mortgage Insurance 101
With mortgage insurance (also called MI, or PMI for private mortgage insurance), you can buy a home with as little as 3% down. This can help you buy earlier, or help you put aside some of your savings for renovations or a rainy day. In addition, mortgage insurance helps provide a safety net in case of financial hardship; you may be able to work with your lender to find a way to keep your home, even if something affects your ability to make your mortgage payments.
Concerned about paying for MI?
Talk to your lender about the options they offer. Keep in mind, premiums are temporary. Once your home reaches 80% of its original value, MI may be cancellable.