Mortgage insurance has a bad reputation, to be sure. However, the reality is that it is an insurance policy that you, the consumer, pay to benefit us, the lender, in case you default as a borrower.
This is important because back in the day, banks did not often lend more than an 80% loan-to-value; people once had to put down a very large down payment. Mortgage insurance came along, and that changed the scene dramatically. Now you are able to get into a home with a lower down payment. As a result, mortgage insurance is now included with the mortgage.
There are a multiple ways you can structure your mortgage insurance policy. Most people are familiar with having it included in your monthly payment, but you can also factor it into the loan amount, or build it into the interest rate—each has its pros and cons.
If you would like to have a conversation about which might be the best structure for you, please reach out to me. Hearing from you would mean the world to me, and I will take great care of you.