Many potential homebuyers balk at the thought of putting down 20% of a home’s purchase price to secure a mortgage. The good news is that you can get a mortgage with a much smaller down payment — but you’ll likely have to take on mortgage insurance as a result.
Mortgage insurance will reimburse your lender if you stop making mortgage payments, and is generally required on conventional loans (loans not backed by a government entity) where the down payment is less than 20% of the home’s price.
Below, we review what you need to know about mortgage insurance and how to factor it into the cost of owning a home.
