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.
