How much does mortgage insurance cost — for a $100,000 loan?
There is not really a way to give you an estimate. If your buying a house you would want insurance for all of your things. You would want the insurance to be more coverage than the mortgage. If you live in the house for 4 years, say you hace made your payments plus extra at the end of the loan to reduce the end date on the loan thereby making your interest paid off quicker, well if you didn’t take out enought insurance, you would just be homeless and have thrown all your money away. 🙁 The determine how much insurance you need by how much square footage there is, what it is built out of etc. To determine what it would cost to rebuild. Your best bet is to shop around and ask lots of questions. The decision is yours on replacement so ask lots of questions. P.S. If you don’t get insurance as soon as the mortgage company finds out, they will put you on will a company that only covers the mortgage- and tack each bill onto your payback amount.
A better question would be- “how can I come up with the 20% down payment so that I don’t have to pay PMI?” Sorry but, the insurance only helps the mortgage company. Also if you do end up paying it keep track of the amount you pay on the principle so that you can end PMI as soon as possible. They may not be honest enough to end it on their own.
