Are you thinking about getting a mortgage in the near future? If so, you may need to buy insurance on that policy. The good news is that you can still afford to buy your home of choice even if you have to pay for mortgage insurance.
Typically, you will pay 1 percent of the mortgage amount each month. On a $100,000 home, you would pay as much as $100 a month. In addition, you may also be required to pay an upfront mortgage fee that is equal to 1 percent of the purchase price of the property.
However, the cost of the upfront insurance is rolled into your mortgage and may not impact the amount that you would have to put down to buy the home. In some cases, this amount can be refunded if you refinance your mortgage shortly after buying your home.
Don’t let the specter of having to buy mortgage insurance dissuade you from buying a home that you will really love. You can find out the cost of mortgage protection insurance by asking your real estate agent ahead of time or by doing research online. By doing your homework now, you will know exactly how much it will cost to own your home, and you can create and effective budget as a homeowner.