Have your sights set on becoming a homeowner this year? But want to make sure it’s within your budget?
Through United Wholesale Mortgage’s Mortgage Insurance Buster, the HomeOwnership Center can now help you get that expensive house you’ve been eyeing at a lower monthly payment!
We’re SO excited to announce that UWM’s Mortgage Insurance Buster is now available for HOC customers who are using our conventional lending products.
Our loan originator Chris Vance gives us the rundown on this new option available to HOC customers!
First of all, what is mortgage insurance?
Buyers pay a Mortgage Insurance (MI) premium each month for the first several years of a loan if they do not have a 20% down payment.
To break it down a little bit, the borrower has to pay this fee until they reach 20% equity in their home. This is typically 10 to 12 years into the loan and is typically an additional $100 per month. So, $100 per month x 144 months = $14,400 that borrowers are paying for not having a down payment.
What is Mortgage Insurance Buster?
This product is HUGE because it allows a buyer to put down just over 10% and eliminate the extra amount for Mortgage Insurance.
How does Mortgage Insurance Buster benefit the borrower?
The benefit is a customer can afford more of a monthly payment if they don’t have to pay the extra mortgage insurance, or they can have a lesser payment than what they were expecting.
Is Mortgage Insurance Buster available for all loan options?
MI Buster is currently only through conventional lending. A conventional loan typically requires a credit score of 640 or above and does not have an income cap. The only caveat is that the purchase price must be over $200,000.00 to use the Mortgage Insurance Buster.
At the HomeOwnership Center, we use USDA/Guarantee products so there isn’t a Mortgage Insurance fee monthly, but the borrower pays a guaranteed fee every month. If they have a down payment of 10.1% or more, this program can help them save a lot of money! Also, if the borrower doesn’t qualify for Guaranteed and has a down payment, this is a game changer.
Is Mortgage Insurance Buster available for folks who are looking to refinance their home?
Yes! I think folks looking at refinancing benefit from this program more than anyone. For example, they could save over $100 a month by refinancing if they owe more than $200K on their home and currently have mortgage insurance.
Reach out to Chris at 304-636-9115 to learn more.