Will I need mortgage insurance?
For conventional loans, if your down payment is less than 20% you’ll need mortgage insurance. Depending on your circumstances, you won’t have mortgage insurance forever. It can drop off after you get the loan balance down below 78 to 80% of the purchase price.
For FHA loans, if you put less than 10% down, you will have a monthly mortgage insurance premium as part of your loan payment for the life of the loan. If you put down more than 10%, the monthly mortgage insurance payment is removed after 11 years of payments. There is also an upfront mortgage insurance premium for FHA.
VA loans do not have a monthly mortgage insurance payment nor an upfront mortgage insurance but they do have upfront funding fees.
Talk with a Loan Guide about the details so you can feel comfortable and confident with your scenario and what is applicable.
For FHA loans, if you put less than 10% down, you will have a monthly mortgage insurance premium as part of your loan payment for the life of the loan. If you put down more than 10%, the monthly mortgage insurance payment is removed after 11 years of payments. There is also an upfront mortgage insurance premium for FHA.
VA loans do not have a monthly mortgage insurance payment nor an upfront mortgage insurance but they do have upfront funding fees.
Talk with a Loan Guide about the details so you can feel comfortable and confident with your scenario and what is applicable.
Updated on: 14/04/2023