80/15/5 - No Mortgage Insurance

n 80-15-5 Program sometimes called a Piggy-Back, is a fixed rate program designed to help Borrower's purchase a home with as little as 5% down while avoiding Mortgage Insurance. Not only does it save you money, it also maximizes your tax benefits. Example: Borrowers wish to purchase a home for $350,000 with a down payment of $17,500.

Problem: Most Lenders will provide a first mortgage of $332,500 with a Mortgage Insurance payment (which is not tax deductible) of approximately $216 per month.

Solution: 80-15-5 program is two loans for the price of one. Under this same scenario, we would issue a first mortgage of $266,000 with a second mortgage of $49,875 and eliminate the additional cost of Mortgage Insurance. All borrowers have a real aversion to paying mortgage insurance. Justifiably so, as mortgage insurance is costly, involves a second Approval process, and is not tax deductible

Another great benefit is after the second is paid off, usually (5-15 years) you are left with only one payment. This can be real helpful if you are planning to retire or take on additional debt in the near future, i.e.., college expenses.