PMI and Down Payments Required

Allow your borrowers to save money by paying a higher interest rate !!! TAMI Tax Advantage Mortgage Insurance known as TAMI will SAVE your borrowers money. In lieu of paying a monthly payment for PMI, the borrower pays a slightly higher interest rate which of course is tax deductible. The increase in higher interest rate is LESS than the PMI payment. The ADD ON for TAMI is credit score sensitive and based on LTV !!! The chart is extensive, so the following is based on credit scores ABOVE 700. Loan-To-Value ADD ON TO INTEREST RATE 90.01 - 95.00 0.375% 85.01 - 90.00 0.250% 80.01 - 85.00 0.125% The borrower may pay points to buy the rate down. Rule of thumb: ONE point equals 1/4% in interest rate. Assume a sales price of $300,000 with 5% down payment. The loan would be $285,000. Assume 30 year fixed at 6.500%: $ 1,801.39 (P & I @ 6.500%) $ 1,872.25 (P & I @ 6.875% which includes TAMI Add on) 223.25 (Monthly PMI) 0.00 (PMI) 250.00 (Estimated Taxes) 250.00 (Estimated Taxes) 75.00 (Estimated Insurance) 75.00 (Estimated Insurance) $ 2,349.64 (Total Payment) $ 2,197.26 (Total Payment) $152.39 per month SAVINGS WITH A TAMI COMBINATION!!! SOFT MARKET 95% loans on NON-JUMBO are still available. The borrower MUST have credit scores ABOVE 680 and two months reserves. If not, we will require an additional 5% down payment. Non-Owner Occupied requires a MINIMUM of 15% down payment with 720 credit scores and above. 25% down payment required if credit scores are below 720 !!! JUMBO loans require a MINIMUM of 15% down payment.