If you are a buyer putting less than 20% down, most lenders require you to purchase mortgage insurance. This used to be less desireable than taking out a second loan to get to the 20% because the insurance premium wasn’t deductible while the interest on the second loan was. Now that the insurance is deductible for 2007 and looking to be renewed for future years, the bottom line monthly payment difference is negligible. There are numerous other advantages that the insurance directly and indirectly provides. Contact your insurance professional for specifics or me for a summary.
Posted on October 17th, 2007 by Brent DeRobertis
Filed under: Trends
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