What you need to know
Mortgage insurance helps you get a loan you wouldn’t otherwise be able to.
If you can’t afford a 20 percent down payment, you will likely have to pay for mortgage insurance as part of your monthly payment. You may choose to get a conventional loan with private mortgage insurance (PMI), or an FHA, VA, or USDA loan.
Mortgage insurance usually adds to your costs.
Depending on the loan type, you will pay monthly mortgage insurance premiums as, an upfront mortgage insurance fee, or both.
Mortgage insurance protects the lender if you fall behind on your payments. It does NOT protect you.
Your credit score will suffer and you may face foreclosure if you don’t pay your mortgage on time.