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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.
|
20% |
10% |
5% |
|
$10,000 |
$10,000
|
$10,000 |
|
$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
|
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.
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.
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