If you want to avoid paying mortgage insurance altogether, the only way is to wait to purchase a home until you have at least 20% to put as a down payment. Mortgage insurance is not mandatory by law; however, borrowers are required to purchase it unless they put down at least a 20% down payment. Consider buying a cheaper house, as that will lessen the amount of mortgage default insurance you will have to pay. Watch out! If you renew your mortgage, be sure to tell your new lender if you already have mortgage loan insurance. This will help you avoid paying premiums twice!