Great news for those of you who are buying a home or refinancing and need private mortgage insurance (PMI). Quicken Loans announces PMI Advantage, a new and exclusive program that can save you thousands in mortgage insurance payments compared to traditional PMI.
PMI Advantage vs. Traditional PMI
PMI Advantage allows you to buy a home without having to put 20% down, or refinance your mortgage without 20% equity in your home – without having to pay a monthly mortgage insurance payment. How does that work? Good question! With PMI Advantage, you’ll accept a slightly higher mortgage rate and eliminate monthly mortgage insurance payments, which often add up to several hundred dollars a month.
Take Advantage of Income Tax Deductions
By choosing PMI Advantage, not only will you never have to make a monthly mortgage insurance payment, but you’ll also be able to take advantage of mortgage interest tax deductions. See, private mortgage insurance is no longer tax deductible, but since PMI Advantage is built into your mortgage rate, you most likely will be able to deduct the interest paid. Make sure you consult a tax advisor for advice on your personal situation.
If you want to find out how much PMI Advantage can save you, go here. You can also see what Bill Banfield, vice president of capital markets at Quicken Loans, has to say about lender paid PMI in this Bankrate article.
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