EL SEGUNDO HERALD September 17, 2020 Page 15
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The Smarter Way To Buy a Home
(BPT) - Are you considering buying a home?
Are you looking for a way to buy without
depleting your savings? If so, you should
know there are ways to qualify for a mortgage
sooner than you think and for less. Insured
low down payment mortgages are affordable
and safe loan options that are offered by most
lenders and help homebuyers achieve this
goal. A low down payment mortgage with
private mortgage insurance (MI) in particular
is a great time-tested option that has helped
more than 1.3 million families qualify for a
home sooner than they otherwise could. So,
how does MI work, and how much can it
really save you?
The 20% down payment myth
If you’ve been putting off buying a home in
order to save up a 20% down payment, there
is good news: it isn’t necessary. Surprised?
You are not alone. While almost 80% of
homebuyers think a 20% down payment is
required, the fact is the average first-time
homebuyer who obtains a mortgage puts
just 6% down.
How is this possible? While there are
several low down payment mortgage options
available, conventional loans with private
MI have been borrowers’ preferred loan
choice for a number of years. Private MI is a
smart way to get into a home sooner, saving
the borrower time, and potentially money,
considering that home prices may move up
over time, so waiting could cost the borrower
more in the long run.
How does an
insured mortgage
work?
Private MI can
help a borrower
with much less
than a 20% down
payment qualify for
a home loan - with
the average down
payment being just
6% in 2019 - and
is typically paid
monthly along
with the mortgage
p a y m e n t . T h e
benefit is not just
that the borrower
is able to qualify
for a home sooner,
but also that private
MI is temporary.
Unlike governmentinsured
mortgages
backed by the
Federal Housing
Administration (FHA), private MI cancels
after 20% equity is established either through
payments or home price appreciation. When
the MI is cancelled, your monthly mortgage
bill goes down.
When to buy a home?
The right time to purchase a home is
different for everyone, especially nowadays.
But as we adapt to a changing world, it is
important to know that MI continues to help
borrowers achieve homeownership, and it
is possible to benefit from historically low
mortgage interest rates and buy a house
without exhausting your savings. In fact, a
recent report from U.S. Mortgage Insurers
found that MI has helped more than 33 million
families become homeowners over the past
60+ years without putting down 20%. You
The Hoffman Group
13031 Villosa Place No. 132, Playa Vista, CA 90094
2 Bed | 2.5 Bath | 1680 SF | $1,095,000
Nestled within a quiet cul de sac, this townhome-style condominium has an inviting open concept with a near
private entrance. This unit is well appointed on the ground level with direct access to street parking for entertaining
and convenience. As you enter through the front door, notice the warm Tuscan hardwood floors, a
flex space that could serve as a home office/school or play room, and a large living room with fireplace. The
kitchen has stone countertops with stainless steel professional grade appliances, and is ideal for hosting, as
it looks into the dining room and outdoor patio. At the end of the hall, the oversized master bedroom features
two large walk in closets, an ensuite master bathroom with frameless shower, tub, separate vanities with
custom cabinetry, and private water closet.Walking distance to Runway retail/restaurants, parks, community
elementary school, library and much more. HOA includes amenities such as pools, gyms, high-speed internet,
cable, in-unit alarm, and most utilities. It is a must see!
quote for the week
“YOU CANNOT CHANGE WHAT YOU ARE...ONLY WHAT YOU DO.”
-PHILIP PULLMAN
BRE No. 01905428
gina hoffman
310. 864. 5347 | ginahoffmanrealtor@gmail.com
can find how many people in your state used
private MI to purchase their home in the last
year by accessing that same report. Interest
rates are at an all-time low and millions of
people continue to achieve the dream of
homeownership thanks to private MI.
To learn more about how private MI
compares to other low down payment options,
visit LowDownPaymentFacts.org.