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Can I add PMI to my principal balance when I take out a mortgage?
There are few different types of MI you can choose from, they are: Borrower-Paid Monthly (this is what most people think of when they think MI) Borrower-Paid Single Premium (you may have QM issues on this) Lender Paid Single Premium Split Up-front and Monthly The only way to determine which option will ultimately cost you less is to come up with a time estimate or range for how long you anticipate you will hold this mortgage, then look at each option over that time, and see where they fall. To answer your question about the single-premium being added to your loan, this typically does not happen (outside of FHA/VA).  The reason for that is you would now have 90%+ financing and fall into a new pricing bracket, if not being disqualified altogether.  What is far more typical is the use of premium pricing to pay this up-front premium.  Premium pricing is where you take a lender credit in exchange for an elevated rate; it is the exact opposite of paying points to buy down your rate. For example:  say a zero point rate is 4.25%, and you have monthly MI of say .8%.  Your effective rate would be 5.05%.  It may be possible to use premium pricing at an elevated rate of say 4.75% to pay your MI up front--now your effective rate is the note rate of 4.75%.  This is how a single premium can save you money.  Keep in mind though, the 4.75% will be your rate for the life of the loan, and in the other scenario, once the MI drops off, the effective rate will go back down from 5.05% to 4.25%.  This is why it is critical to know your estimated length of financing.