You can save on mortgage insurance (MI) if you arrange a loan through Illinois Insurance and Mortgage Services by May 15.
MI makes a lender the beneficiary if a borrower defaults on a home loan. It’s usually required on private mortgage loans, though not on FHA or VA loans. We have a lender that is willing to waive MI requirements for qualified home buyers. You usually need a 20 percent down payment to pass on MI with private insurance. In this case you can put down as little as 5 percent.
If you would have paid $65 a month for MI, you could save more than $5,000 by the time MI was no longer required in a typical loan arrangement. The tax deduction for MI payments has been eliminated, so there’s no benefit to paying MI when not required.
This offer has already been extended once, so be sure to act before May 15 to obtain a low-down payment MI exception.