PMI's Lowering Your Down Payment
How To Buy the Home
You Want
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
|
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.
|
