PMI's Lowering Your Down Payment
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.
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.
The lower the down payment, the more you retain for home furnishings, other
investments, future emergencies, or even college tuition.
With 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
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.
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.
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