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.
Buy More
Home
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
|
Without
PMI
|
With
PMI
|
| Down
Payment |
20%
|
10%
|
5%
|
| Your
Available Savings |
$10,000
|
$10,000
|
$10.000
|
| Maximum
Home Price |
$50,000
|
$100,000
|
$200,000
|
Conserve
Your Savings
The lower the down payment, the
more you retain for home furnishings, other investments, future
emergencies, or even college tuition.
|
Without
PMI
|
With
PMI
|
| Home
Price |
$100,000
|
$100,000
|
$100,000
|
| Down
Payment |
20%
|
10%
|
5%
|
| Cash
Down Payment |
$20,000
|
$20,000
|
$20,000
|
| 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.
|
