We are independent & ad-supported. We may earn a commission for purchases made through our links.
WiseGEEK

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

How Do I Choose the Best Property Mortgage Insurance?

Kristie Lorette
By Kristie Lorette
Updated May 17, 2024
Our promise to you
WiseGEEK is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGEEK, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

When you finance a home for less than the traditional 20% down, most mortgage lenders require you to pay property mortgage insurance. Since you have to pay the premium for the insurance, you may want to do some premium rate shopping to choose the best property mortgage insurance for your budget.

Generally, this type of mortgage insurance is referred to as private mortgage insurance or PMI. Mortgage insurance protects the lender for loaning you more than it normally would on the purchase or refinance of a home. When you choose your mortgage lender, the representative will automatically quote you an estimated price for the mortgage insurance premium you will have to pay.

You have the option to go with the mortgage insurance company that your lender works with or you can opt to shop around. Property mortgage insurance is generally not an expensive premium payment. In order to ensure that you are choosing the best private mortgage insurance provider, contact some additional mortgage insurance providers.

You will need to provide information to the private mortgage insurance company in order for them to provide you with a premium quote. Generally, the company will ask for the purchase price or market value of the home. You also need to let them know which state the home is located in and how much of a mortgage you are placing on the home.

In addition to the premium amount, you should also inquire as to how you can make the premium payments. Most property mortgage insurance companies allow you to escrow the private mortgage insurance premium. This means that you pay it on a monthly basis as part of your mortgage payment to your mortgage company. The mortgage company then pays the mortgage insurance premium to the insurance provider.

Most mortgage companies require you to escrow, so they can ensure that the policy premium is paid and always up-to-date. If you prefer to pay the policy premium upfront and on an annual basis, then verify that this is an option with the insurance provider. You should also verify that this is acceptable to the lender. Typically, if you choose your own property mortgage insurance company, the lender requires you to prove that the policy has been paid and is in effect.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
See our Editorial Process Share Feedback

Related Articles

Discussion Comments

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.