Starting August 1, first-time buyers eyeing new construction get a new trick to trim their payments: 30-year insured amortizations.
But this magic has a price. Bumping the standard 25-year amortization up to 30 years jacks up the default insurance premium by 75 bps—assuming a high-ratio mortgage.
On a 5% down mortgage, that's a hefty 18.75% increase versus the standard 4% premium. We're talking $750+ more per $100,000 borrowed.
Is it worth it? Let's break it down...
You don't have access to this post on MortgageLogic.news at the moment, but if you upgrade your account you'll be able to see the whole thing, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.
Comments
Sign in or become a MortgageLogic.news member to read and leave comments.
Just enter your email below to get a log in link.