Many new homebuyers underestimate some costs associated with buying a home. Borrowers are usually required to get Private Mortgage Insurance (PMI) if the loan exceeds 80 percent of the home’s value. This insurance protects the lender in the event that a homeowner defaults on the loan.  There are mortgage products that will allow a lower downpayment without the additional PMI.  As you shop for a mortgage, it is extremely important to inquire about this.