Do lenders offer alternatives to private mortgage insurance?
Some lenders offer another option for purchasing PMI. Under this program (generally referred to as “premium pricing”), a premium is added to your interest rate and origination fee. This premium pricing may benefit you because private mortgage insurance is not tax deductible and mortgage interest may be. You should speak with your tax preparer or accountant for information and advice on this matter. Another more popular method is by combining a first and second mortgage to satisfy the 20% required on your first mortgage to avoid mortgage insurance. There are programs available from Zero down. We can discuss these options if they are of interest.
Some lenders offer another option for purchasing PMI. Under this program (generally referred to as “premium pricing”), a premium is added to your interest rate and origination fee. This premium pricing may benefit you because private mortgage insurance is not tax deductible and mortgage interest may be. You should speak with your tax preparer or accountant for information and advice on this matter. Another more popular method is by combining a first and second mortgage to satisfy the 20% required on your first mortgage to avoid mortgage insurance.
