A loan with mortgage insurance may be the safest and most affordable option to help your family achieve the dream of homeownership. Mortgage insurance can help new homebuyers get into a home sooner, with a competitive monthly payment. Existing homeowners with adjustable rate mortgages can refinance to a new loan with mortgage insurance to avoid rising payments. A loan with mortgage insurance has these advantages:
Competitive Monthly Payments
In today's environment, loans with mortgage insurance can compete with or even beat payments offered by combination loans. In a few short years, monthly mortgage insurance can be canceled, reducing payments even further, while a second loan must be paid in full.
Predictability
Expect steady monthly payments that never increase. With other financing options, such as combo or “piggyback” loans, monthly costs go up when interest rates rise.
Tax Deductibility
Mortgage insurance premiums are tax deductible for many borrowers
1. By taking the deduction on your federal income taxes, you can put a little more in your pocket each year.
The Unparalleled Ability to Cancel
Because mortgage insurance is temporary insurance, you may be able to cancel it after building sufficient equity in your home. With today's home appreciation rates, this can occur in as few as two to four years, even with a low down payment.
