When consulting in Burlington, the topic of PMI often comes up. Some people delay contracts thinking they just need to save a little more for the down payment, viewing it as a loss. This is a misunderstanding.

According to Zillow, the average home value in Burlington is around $890,000. For Middlesex County as a whole, the median was $847,000 as of May 2026. Burlington is on the higher end compared to the county average.

PMI is applied when the down payment is less than 20% in conventional loans. Once the equity exceeds 20%, you can request to cancel it. This is different from the FHA's MIP, which remains throughout the loan term.

Let's look at how FHA and conventional loans differ with the same budget. FHA allows a starting down payment of 3.5% if your credit score is above 580. Conventional loans require a score of at least 620, and rates improve with scores above 680. However, with a lower down payment in conventional loans, PMI will apply.

Massachusetts has several high-cost areas designated by FHFA, and Middlesex County is one of them. The high-cost area core loan limit for 2026 is $1,249,125, significantly higher than the national standard of $832,750. Burlington's market value falls within this limit.

Comparing Burlington to neighboring Lexington, Lexington tends to have higher market values. With the same budget, Burlington remains a relatively accessible option.

One reason Korean families seek Burlington is the school district. While referencing GreatSchools ratings, keep in mind that school district boundaries change frequently, so it's advisable to verify assigned schools before signing a contract.

Families moving from out of state may find Massachusetts's property tax rate higher than their previous residence. It's wise to check property taxes and insurance early in the loan consultation process.

For investors looking for rental income, comparing Burlington with nearby Wilmington is worthwhile. Burlington has a developed commercial district, leading to stable rental demand, but the purchase price is high, resulting in relatively lower yields.

If you proceed with a conventional loan of $890,000 and a 10% down payment, PMI could be around $300 per month. You can request cancellation once you reach 20% equity, and it will automatically terminate at 78% equity.

Middlesex County is also a high-cost area, so the FHA loan limit is also $1,249,125, making it manageable within Burlington's market values.

Should you choose conventional or FHA? If your credit score is above 680, conventional loans offer better rates. If you're around 620, FHA has a lower threshold. Ultimately, your credit score is the deciding factor.

Families who have just immigrated from Korea often start with FHA due to their short credit history. As their scores improve, they can switch to conventional loans.

USDA loans often do not apply in developed areas like Burlington. If considering USDA within Massachusetts, you should look at more rural areas on the outskirts.

Veterans should also consider VA loans. They can proceed without a down payment and without PMI, but a funding fee ranging from 1.25% to 3.3% applies, which is the same in both Suffolk County and Middlesex County.

In first-time homebuyer consultations, there are often cases where the appraised value falls short of the sale price. In such cases, increasing the down payment or renegotiating with the seller may be necessary.

When determining the size of the down payment, comparing the monthly cost of PMI with the time it takes to save that money can help make a practical decision. Rather than just saving more, comparing the numbers can clarify the decision.

PMI is not a permanent cost; it disappears as equity builds. Just understanding this can make planning your down payment much easier. This article is not investment or legal advice, and consulting a professional before making any contracts is recommended. The information is based on 2026 data.