If you don’t own 20% or more equity in your home, you probably will be required to purchase mortgage insurance as part of the package. Mortgage insurance usually costs between 0.5% to 1.15% of the value of your full loan every year.
So if your loan for your home is $100,000 for example, the total due each year would be about $1,000. Per month that isn’t so bad (about $83.33).
Want to take the huge step of purchasing a house, but don’t know where to begin your home-buying journey?
There are a number of steps which you need to complete before you can even start searching for a home—and then a number of steps left in order to complete the process. It’s very important to learn all you can about the process and the housing market before you close on a deal.