Every piece of the monthly housing cost, itemised
Mortgage insurance, by type
In short
Mortgage insurance protects the lender, not you, if a loan defaults. Conventional loans with smaller down payments usually carry private mortgage insurance, which can be cancelled under rules explained by the CFPB. FHA loans carry their own mortgage insurance premiums, and USDA and VA loans use guarantee or funding fees instead.
Last reviewed against the primary sources listed below.
Types
| Loan | What it carries | Can it end? |
|---|---|---|
| Conventional | Private mortgage insurance (PMI) | Yes, under cancellation and termination rules |
| FHA | Upfront and annual mortgage insurance premiums | Depends on the loan's terms |
| USDA | Upfront and annual guarantee fees | Set by the program |
| VA | A one-time funding fee, with exemptions | No monthly insurance |
Where to find your figure
Projected Payments on page one of the Loan Estimate shows monthly mortgage insurance. The CFPB PMI guide explains cancellation.
In the workbench
Enter the monthly mortgage insurance from your estimate. If there is none, leave it empty.
Line-item questions
What is mortgage insurance?
Insurance that protects the lender if the borrower stops paying. You usually pay the premium as part of your monthly payment.
How can you reduce your total loan cost?
Comparing Loan Estimates, removing mortgage insurance when the rules allow, and paying extra principal can all reduce the total cost of a loan.