When you purchase a home with less than 20%, you are required to pay mortgage default insurance This is usually added to the mortgage amount so you do not have to pay out of pocket on closing. It may seem like an extra expense, but it can help buyers to get into the market earlier without having to save up the full 20%. Also:

✅When the mortgage is insured the lender rarely asks for an appraisal

✅Because the mortgage is insured there is virtually no risk to the lender, and you will be eligible for the best rates

✅The premium is added to the mortgage amount as a one time payment and the mortgage is insured permanently unless you refinance

📲 Info courtesy of Jacob Manishevitz