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PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home's purchase price. It protects the lender — not you — in case you default. PMI typically costs 0.5%–1.5% annually on the loan amount. Once your loan-to-value ratio drops to 80% (20% equity), you can request PMI cancellation under the Homeowners Protection Act.

As of May 2026, the Freddie Mac PMMS benchmark shows 30-year fixed rates around 6.81% and 15-year fixed rates around 6.11%. Your actual rate will depend on your credit score, debt-to-income ratio, loan-to-value ratio, and lender. Borrowers with excellent credit (760+) typically qualify for rates 0.25%–0.5% below average.

A 30-year mortgage offers lower monthly payments but you pay significantly more interest over the loan's life. A 15-year mortgage has higher monthly payments but you build equity faster and pay roughly half the total interest. For example, on a $320,000 loan at 6.81%, a 30-year loan costs about $2,100/month P&I vs. about $2,820/month on a 15-year — but the 30-year loan costs about $150,000 more in total interest.

Yes. Most lenders collect property tax and homeowners insurance through an escrow account, rolling those costs into your monthly payment. Lenders also qualify you based on your full PITI payment. Property tax rates vary significantly by state — from under 0.3% in Hawaii to over 2% in Illinois and New Jersey. The national average is approximately 1.1%.