Is it better to role the insurance in the mortgage payment or pay it separate?

Answer 1

Do you have the money to pay the mortgage insurance upfront?  If so, it's best to pay it upfront, or put more money down.  Most role it into the mortgage because they do not have the money to put 20% down to avoid mortgage insurance.

Or are you speaking of Homeowners Insurance?  In the past if you were putting down 20% or more most Lenders let you choose to include the homeowners insurance in the monthly payment, or allow you to pay out of pocket.  Today most Lenders require you to escrow the Homeowners Insurance into the monthly mortgage payment.  This insures their interest is protected by homeowners insurance should your home be damaged.