Save the Cost of Mortgage Insurance

Save the Cost of Mortgage Insurance

During the banking crisis in the Great Recession, certain types of mortgages were unavailable that are once again being offered. Fortunately, the 80-10-10 mortgage is one of those making a reappearance and it can save borrowers a considerable amount of money. 

The objective of an 80-10-10 mortgage is to avoid the expense of mortgage insurance for buyers wanting a 90% loan. A buyer can obtain an 80% first mortgage and a 10% second mortgage with a 10% down payment and not be required to have private mortgage insurance. 

For example, a buyer could put $30,000 down on a home priced at $300,000 and get an 80% first mortgage without mortgage insurance. The borrower could get a second mortgage, either through the same lender or a third party.

In the example, the 80-10-10 would save a buyer $193.71 per month which can be a considerable amount of money over a ten-year period. The interest rate on the second loan will be higher than the first because there is more risk. 

Helping buyers make better choices is a valuable service real estate professionals can provide. Having the right tools and information can make the decisions easier to understand. Using an 80-10-10 calculator, you can see what the savings might be for your situation.

Texas law requires all real estate licensees to give the following information about brokerage service click here

Wendy Huang, MBA,SRS, GRI, CRS, IRES, e-pro, ASP, ALHS, SFR, RFC, RE/MAX Premier Group, RE/MAX Hall of Fame, 

RE/MAX Lifetime Achievement ; Over 22 years' experience!

Helping Over 1000 Families Meet Their Real Estate Needs !!!

Direct: 972-365-7888  

Has your home value gone up in the past 6 months? Click  here for a Free INSTANT Report ! '

Plano real estate, Frisco real estate, Allen real estate, DFW real estate, Dallas real estate, McKinney real estate, Coppell real estate, Highland park real estate, TX real estate, Addison Real Estate, Allen Real Estate, Anna Real Estate, Carrollton Real Estate, Collin County Real Estate, Coppell Real Estate, Dallas Real Estate, Denton County Real Estate, Distressed Properties, Flower Mound Real Estate, Frisco Real Estate, Irving Real Estate, Lewisville Real Estate, McKinney Real Estate, Murphy Real Estate, North Dallas Real Estate, Parker Real Estate, Plano Real Estate, Prosper Real Estate, Richardson Real Estate, The Colony Real Estate, Wylie Real Estate

Before You Pay Cash for a Home

The National Association of REALTORS® reports in its 2016 Profile of Home Buyers and Sellers that 12% of all buyers paid cash for their home.

Before paying cash for a home, a buyer should decide if they might put a loan on the home in the near future.  It may affect the ability to deduct the interest on a mortgage placed on the home at a later date.

Homeowners can currently deduct the interest on up to $1 million of acquisition debt which are the borrowed funds used to buy, build or improve a home. Paying cash for a home establishes acquisition debt at zero. The only deductible interest to the owner would be home equity debt which is limited to $100,000 over acquisition debt.

Paying cash certainly seems like a simple decision but it may limit a homeowner’s ability to deduct interest on a future mortgage. You can get more information about this from IRS Publication 936 or from your tax professional.

Texas law requires all real estate licensees to give the following information about brokerage service click here

Wendy Huang, MBA,SRS, GRI, CRS, IRES, e-pro, ASP, ALHS, SFR, RFC, RE/MAX Premier Group, RE/MAX Hall of Fame, 

RE/MAX Lifetime Achievement ; Over 22 years' experience!

Helping Over 1000 Families Meet Their Real Estate Needs !!!

Direct: 972-365-7888  

Has your home value gone up in the past 6 months? Click  here for a Free INSTANT Report ! '

Plano real estate, Frisco real estate, Allen real estate, DFW real estate, Dallas real estate, McKinney real estate, Coppell real estate, Highland park real estate, TX real estate, Addison Real Estate, Allen Real Estate, Anna Real Estate, Carrollton Real Estate, Collin County Real Estate, Coppell Real Estate, Dallas Real Estate, Denton County Real Estate, Distressed Properties, Flower Mound Real Estate, Frisco Real Estate, Irving Real Estate, Lewisville Real Estate, McKinney Real Estate, Murphy Real Estate, North Dallas Real Estate, Parker Real Estate, Plano Real Estate, Prosper Real Estate, Richardson Real Estate, The Colony Real Estate, Wylie Real Estate