Private Mortgage Insurance is required for most loans that exceed a loan to value of 80%.  It insures the Lender in the event that you default on your mortgage payment and the lender is forced to sell your property at a loss.  Mortgage Insurance benefits the Buyer because it allows you to put less than 20% down – sometimes as little as no money down.  Without mortgage insurance, this would not be possible with A+ interest rates.  It used to be that a borrower had to pay as much as 1% of the loan amount up front and then pay a significant amount each month.  Mortgage insurance companies now offer plans which require a very small amount at closing together with a regularly scheduled payment each month.  Deciding whether you should liquidate some assets to use as additional down payment (to avoid the cost of mortgage insurance) requires that you evaluate what you lose by liquidating those assets.  Many clients find that paying other debts is better than applying additional cash towards the down payment.  Paying off credit cards and car loans may improve cash flow more than avoiding Private Mortgage Insurance.  Private Mortgage Insurance is a tool, and like any other tool you need to evaluate the pros and cons before making a decision. 

Churchill Mortgage would be happy to assist you in comparing a program with PMI vs. without to help you make the best decision. Contact one of our Home Loan Specialist at 1-888-562-6200 or Request A Call Back on our website www.churchillmortgage.com and we will contact you at a time that is convenient for you.