Is it better to put 20 down or pay PMI?

Is it better to put 20 down or pay PMI?

PMI is designed to protect the lender in case you default on your mortgage, meaning you don’t personally get any benefit from having to pay it. So putting more than 20% down allows you to avoid paying PMI, lowering your overall monthly mortgage costs with no downside. Mar 12, 2021

How much is PMI on a $300 000 loan?

Let’s take a second and put those numbers in perspective. If you buy a $300,000 home, you would be paying anywhere between $1,500 – $3,000 per year in mortgage insurance.

Why are closing costs so high?

So, in most cases, sellers pay as much and maybe more than buyers. Closing costs are paid in cash at the time of closing. You’ll pay higher closing costs if you choose to buy discount points and – also referred to as prepaid interest points or mortgage points, but the trade-off is a lower interest rate on your loan. Nov 15, 2021