Those insurance payments can put stress on your finances, especially if you're already tight on cash, warns Hui-chin Chen, a certified financial planner at Pavlov Financial Planning.
If you can't afford to make at least a 10% down payment, you may want to pause your home search and save more money, advises Kirk Licata, a CFP at Longview Wealth Management.
Step 2: Do the math
Even if you can afford a house with a low down payment, there are a lot of other costs to consider. In addition to mortgage insurance, you'll also need to pay for homeowners insurance, property taxes and maintenance fees or HOA fees.