Mortgage
insurance (MI) allows you to choose from a wider price
range of homes. How? Lenders are generally willing to
accept a lower down payment than the standard 20% if
the lender obtains mortgage insurance on your loan through
a mortgage insurance company.
You
can not only get the home you deserve, but you can conserve
your savings and increase your income tax deductions,
just by putting less money down.
Buy More Home
You
can afford more home and maximize your investment if
your lender obtains MI for your loan.
Without
MI
With
MI
Down
Payment
20%
10%
5%
Your
Available Savings
$10,000
$10,000
$10,000
Maximum
Home Price
$50,000
$100,000
$200,000
Financing a home with a
low down payment loan may be the best way to afford a
home in high-priced markets.
Conserve
Your Savings
The
lower the down payment, the more you retain for home
furnishings, other investments, future emergencies,
or even college tuition
Without
MI
With
MI
Home
Price
$100,000
$100,000
$100,000
Down
Payment
20%
10%
5%
Cash
Down Payment
$20,000
$10,000
$5,000
Savings
$20,000
$20,000
$20,000
Savings
Retained
$0
$10,000
$15,000
Another
type of mortgage that is becoming popular is called
a Lender Buydown, where the homebuyer gets an Even if
you have less than $20,000 saved, you can still afford
to buy a $100,000 home with a lower down payment option
if your lender obtains MI on your qualified loan from
a mortgage insurance company.
Increase
Your Tax Write-off
A
larger loan amount will have higher interest payments
and could result in higher tax deductions.
Mortgage
interest is one of the few remaining consumer debt items
that you can deduct.
This page has been brought to you by PMI Mortgage Insurance.
