In the last part of our series on mortgage insurance, we look at options for payment.
We’re wrapping up our series about mortgage insurance today with one final topic. Jen Sopinski from National MI joins us again to answer this question: How do you pay for mortgage insurance?
There are two ways to pay. One is a monthly insurance payment, which is rolled into the monthly mortgage payment itself. The second is a single premium payment, which is essentially a lump sum up front.
The most popular way is the monthly mortgage insurance payment because some borrowers don’t have that lump sum available to spend. The monthly payment is a more convenient way for them to pay.
There’s actually a third way, called lender-paid PMI. Talk to your mortgage advisor to go through the details of the program because, in some cases, it causes your interest rate to increase.
Feel free to reach out to us with any questions you may have. Also, get in touch if you’re looking to buy or sell a home or need further real estate information. We look forward to hearing from you.