How PMI Can Help Lower Your Down Payment
Lowering your down payment with PMI
Private mortgage insurance (PMI) is not always a bad thing. Its benefit -- it can allow 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. 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 PMI for your loan. In fact, financing a home with a low down payment loan may be the best way to afford a home in high-priced markets.
Curious about how much of a down payment you may need for your dream home? Try our down payment calculator.
Conserve your savings
The lower the down payment, the more you retain for home furnishings, other investments, future emergencies, or even college tuition.
And don’t forget there are many government mortgage assistance programs available to assist with down payment. It’s a great idea to reach out to your lender to see which programs you may qualify for.
Increase your tax write-off
Last but not least, mortgage interest is one of the few remaining consumer debt items that you can deduct. And, a larger loan amount will have higher interest payments, which could result in higher tax deductions. Keep that in mind when considering a low down payment mortgage.
Want to gain a better understanding of PMI? Check out our PMI FAQ’s.