Return to Library
Remember, the topic of private mortgage insurance will not pertain to most of the loan products at First Interstate Financial. On the few programs that may pertain, the following section has relevance.
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.
| 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.
This page has been brought to you by PMI Mortgage Insurance.
|
If you have questions or comments regarding First Interstate Financial's World Wide Web server pages, please send email to First Interstate Financial |