AND… Nutter Home Loans will even pay your Private Mortgage Insurance (PMI) up front, so you don’t have to pay it every single month over the life of your loan.
Private Mortgage Insurance (PMI) is required when a buyer has less than 20% for a down payment on a home loan. Lenders typically add the PMI fee (generally $100-$200 per month) to your monthly mortgage payment.
We pay all the PMI fees up front, for you. Your interest rate will increase slightly to cover the cost of your PMI, but your monthly payment will still go down.
At Nutter, our Lender Paid Mortgage Insurance is an option for those wanting to reduce their monthly payments, and offers the potential for a greater tax deduction.
Let’s say you’ve found a home that sells for $285,000. You’ve saved $14,250 to put down (which is 5% of the home sale value) and are seeking a Conventional Loan.
SELLING PRICE: $285,000
LOAN AMOUNT: $270,750
|PAYMENT BREAKDOWN||LENDER-PAID MORTGAGE INS||MORTGAGE WITH PMI|
|Principal & Interest (P&I)||$1,371.85||$1,312.19|
|Homeowner’s Insurance Estimate||$150.00||$150.00|
|Real Estate Taxes Estimate||$233.33||$233.33|
*The above is provided for informational purposes only. Interest rates shown are examples only and are subject to change without notice. Please note: program availability is subject to approval under insurer and investor requirements, not all borrowers may qualify.