Mortgage Insurance - What is this and do I need it?
It appears there is not a lot of clarity amongst buyers as to what mortgage insurance is and I wanted to make sure you have the accurate info.
Mortgage insurance or (MIP) is an insurance obtained by your lender when you finance a home with less than 20% down payment. The only time you do not have to obtain mortgage insurance in this instance is when using a VA loan (past/present military).
Depending upon the loan program this will be a percentage of the total amount of the loan paid monthly as part of your monthly mortgage payment. In some loan programs once you reach a certain equity position you can have this payment removed from your monthly payment, or you could refinance out of the loan altogether to eliminate the monthly insurance costs.
You can also click the link below and it will take you directly to our mortgage calculator so you can see how each loan program will impact your MIP and see how increasing and decreasing down payment affects this number.