17 Aug
Private mortgage insurance
Some lenders will let you take out more than this conventional 80 percent, but if you do, it can turn out to be quite costly. Most mortgage companies that lend more than 80 percent will make you pay what is called private mortgage insurance, or PMI, which will add quite a bit to the loan—so it’s best if you can stick to the straight 80 percent loans, which after all are based on what lenders think you can comfortably afford.