The MI Buster Conventional Loan!
Same Home. Lower Payment. Say hello to a new conventional fixed rate loan product that eliminates mortgage insurance with less money down: Make you next purchase with as little as 10.01% down and enjoy all the benefits of a PMI (Private Mortgage Insurance) free conventional home loan!
MI Buster loans can be utilized for both Primary and Secondary home purchases with loan amounts starting at $200,000. There are even high balance loans available for loan amounts over county limits!
What is PMI?
Private Mortgage Insurance or PMI is a type of insurance that is required by most lenders on conventional loans with less than 20% down or an LTV that is greater than 80% Loan to Value (LTV). This insurance is collected to offset their increased risk for financing a larger percentage of the homes value. Once the principal of the loan drops below 78% of the homes value the PMI can be cancelled. This can also be achieved, potentially sooner, with a refinance but current rates and closing costs should analyzed to determine which option is financially beneficial.
How much is PMI?
PMI varies from lender to lender. It is also somewhat dependent on other factors such as Loan amount, Credit Score, and % down. Average PMI rates range from 0.55% to over 2.0% annually of the total loan amount, which is paid monthly. For example on a 300,000 loan the monthly MI payment could range from $137.50 to $500. Lower MI rates are possible depending on which broker or lender you choose. Simplicity Mortgage has access to exclusive PMI rates that are guaranteed to be the lowest in the nation.
MI Buster Benefits.
There are two amazing ways you can benefit from this exclusive new loan product. The details of each are broken down below. If you are looking to spend a little less each month - you can purchase a home at the same price point and enjoy a lower, MI free, monthly payment. Or, if you are looking to get more bang for your buck, you can put the monthly savings from the MI towards principal and interest. This will allow you to purchase a home at a higher price point and keep your monthly payment about the same.
Same Home. Lower Payment.
This new loan product allows you to purchase the same home with the same amount down (as long as its over 10.01%) with NO PMI. All the benefits of a conventional loan with out the hassle and expense of PMI. Your monthly payment may decrease up to about $70/month on a $300,000. It's a win-WIN!
Same Payment. More Home.
Another exciting way to utilize your new found freedom from MI is to utilize the monthly savings to increase your purchase power. Let's say you were previously looking to get a loan of $300,000 and would have been spending an additional $120 a month on MI. Not having MI would allow you to up your monthly principal and interest payment by $120. This increase in the monthly principal and interest payment correlates to a loan amount of $325,000! That is an additional increase of about $25,000 in available home financing. There are things to consider in this scenario that come along with larger loan amounts - namely a greater down payment to achieve 10.01% down. Depending on your specific scenario, this option could be beneficial to your home ownership goals.
Time to say Say Bye to PMI!
Ready to save yourself the cost of monthly mortgage insurance! savings? Call Simplicity Mortgage today to discuss the best loan options for your next home purchase!
Meet the Author:
Freddy Kling, Broker for Simplicity Mortgage
Simplicity Mortgage is a one stop mortgage shop, where my team and I make homeownership dreams come true. Our extensive portfolio and simplified loan process allows us to close loans quickly and successfully, while providing each client an exceptional customer experience.
I come from a family of entrepreneurs and have always understood the value of integrity, challenging work, and dedication. It is extremely important to me that clients and referral partners appreciate that I am available and responsive around the clock.
I have been a resident of Florida for over 40 years and graduated from Embry Riddle Aeronautical University with a bachelor's degree, majoring in computer science and a minor in mathematics. Before the mortgage industry, I was a Senior Principal Program Manager for the world’s fourth largest software company.
Tara Kling and I were certain that our combined areas of expertise would enable us to open a mortgage company that stood out from others not only by offering more loan options, better interest rates, and less costs but by also ensuring we had the most sophisticated technology and highest level of security to meet today’s digital challenges. We have built an outstanding team of employees who not only complement each other’s skill sets, but also work very together resulting in a positive and simple closing on your next purchase or refinance.
Call me today to discuss your real estate goals!
Simplicity Mortgage is located on Dulawton Avenue in Port Orange, FL.
Simplicity works with borrowers looking for for home financing in all areas of Florida area. Our service area includes Volusia and Flagler counties, Palm Coast, Ormond Beach, Ormond by the Sea, Deland, Daytona Beach, Daytona Beach Shores, Port Orange, Ponce Inlet, New Smyrna Beach, Orlando, Jacksonville and all surrounding areas of Florida.
Our lender portfolio is made up of 15 or more lending institutions. This gives us plenty of options to find the most optimal financing option for a clients specific home or investment purchase.
Our goal is to provide a smooth and simplified customer experience coupled with an low rate and minimal fees. We are your point of contact throughout the process. Simplicity provides customers with a variety of loan products: Conventional, VA loan, FHA loan, USDA, Jumbo, Non Qualified Mortgage (non-QM), Self Employed, 1099, first time home buyer, investment, and secondary property purchases. We have outstanding loan options for your home refinance as well, IRRRL, Home Equity Loan, Streamline Refinance, Cash Out, Rate and Term. Call Simplicity today to discuss your purchase or refinance. We will use our home loan calculator to determine your future mortgage payment with several mortgage rates. That way we can help you compare and analyze which home loan product is the most beneficial mortgage option for your next home purchase or refinance.
If you are looking to buy a Primary, Secondary or Investment home -
Finance with Simplicity Mortgage!