Mortgage Insurance

Guest

I am looking for a mortgage of $150K. I have down payment of 25%. But I am not sure whether the mortgage insurance is required or not. Making Down payment of 25% is a good choice or less than 25%? Is it needed to pay premium as long as the loan is above 75% of the purchase price?

sarah · Joined: 19 Mar 2006 Posts: 25 5.06 Dollars($)

Hi Kathleen

Whether you decide to put a down payment of 25% or less than that, you have to pay the premium. But one thing is that the percentage of premium is varies on the percentage of down payment. And the premium amount will get added to your borrowed amount.

Like in your case, your total loan amount is $150 K and if you have decided to pay down payment of 25%. In this case, 0.65% of premium is charged on your loan amount. And your total borrowed amount will become $150,975.

Thanks
SJ


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