Do I need mortgage insurance with Fannie Mae?

Whether you need mortgage insurance with Fannie Mae depends on the specifics of your loan. Generally, if you are obtaining a mortgage with less than twenty percent down payment, mortgage insurance will be required. This insurance protects the lender in case of a default and is typically added to the monthly mortgage payment. Fannie Mae offers options for both private mortgage insurance, known as PMI, or a higher interest rate in lieu of mortgage insurance, which may be more attractive to some borrowers. It is also essential to consider other factors such as credit score, loan type, and overall financial situation when determining the necessity of mortgage insurance. Borrowers can find guidance on this topic by visiting the official website of Fannie Mae for detailed information regarding mortgage insurance requirements and options.