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Benefits of the “PMI Crusher” loan: |
- Your interest may be tax-deductible Private mortgage insurance (PMI) insures the lender against defaulted loans and is not tax-deductible. But with a PMI Crusher loan, you may be able to deduct the interest on your loan*.
- Avoid paying costly mortgage insurance PMI can be very expensive. The PMI Crusher program allows you to finance a home while avoiding having to pay PMI.
- If the loan-to-value (LTV) ratio on your original home loan was more than 80%, your lender likely required you to obtain private mortgage insurance. PMI protects the lender in case a borrower defaults on a loan, which has a greater probability of occurring for high-LTV loans. Annual PMI payments can easily top $1,000.
While the Homeowner's Protection Act requires your lender to notify you when the LTV drops below 80%, they are not required to stop charging you for mortgage insurance automatically. If you think your LTV is low enough and your current lender is reluctant to drop PMI, refinancing with a lender that won't charge PMI may make sense.
If you’d like to put an end to your PMI apply now!!
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