How much is mortgage insurance? PMI cost vs. benefit: Massachusetts Homebuyers Homeownership

Is mortgage insurance a bad thing?

Private mortgage insurance (PMI) is usually required if you put less than twenty percent down on a house.

Many home buyers try to avoid PMI at all costs. Why? Because unlike homeowners insurance, mortgage insurance protects the lender rather than the borrower.

But there’s another way to look at it.

Mortgage insurance can put you in a house a lot sooner. You might pay more than one hundred dollars per month for PMI. But you could start gaining tens of thousands per year in home equity.

For many people, PMI is worth it. It’s a ticket out of renting and into equity wealth.

What is mortgage insurance?

Private mortgage insurance (PMI) is a type of insurance policy that protects mortgage lenders in case borrowers default on their loans. You’re usually required to pay for PMI if you make a down payment smaller than twenty percent. With some mortgages, PMI is a temporary requirement. But with others, it will last the life of the loan………….

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FIRST TIME HOMEBUYERS