NO
PMI LOANS:
First, it's important that you understand exactly what PMI is and what
is does for you as the borrower. PMI stands for "Private Mortgage
Insurance," which is required on virtually all conventional loans
when your down payment is going to be less than 20% of the purchase price.
In these situations, PMI protects the lender should you default on the
loan.
The payments for your PMI are included in your monthly mortgage payment
and are not tax deductible. PMI must be carried with your home loan
for at least two years before you can request its elimination. To
eliminate your PMI, you must demonstrate that:
- Your loan balance is 80% or less.
- You have made all your mortgage payments
in a timely manner for 24 consecutive months.
South Bay Mortgage & Capital
Associates, provides financing that eliminates the
need for PMI -- Even
when your down payment is less than 20% of the purchase price.
We accomplish this by providing you with two loans for the
transaction as follows:
a. A first trust deed
(TD) for up to 80% loan-to-value (determined by a property
appraisal or purchase price of the home, whichever is
less).
b. A second trust deed
for the difference needed over the 80% amount of the
first trust deed. As mentioned earlier, PMI is not tax
deductible whereas the rest of your mortgage payment
is.
Here's how one of our No PMI loans may benefit
you:
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