The time had finally arrived—my husband and I had saved enough for a home down payment and we were off to the bank to get approved for our first mortgage. Talking to the loan officer we discussed term lengths, payment options, and the various fees included in our monthly payments. Principal and interest were clear, plus taxes and home insurance, but we were caught off guard by mortgage insurance.
This was the first time either of us had ever heard of insurance for a mortgage. It was a sobering realization that we had missed this key part of the process and that we would need to figure in yet another expense to our budget. Luckily, we learned that we could circumvent mortgage insurance and stay on budget.
