If you are looking to buy in Richwoods in Frisco or Lawler Park in Frisco, would you like your monthly payment to be smaller? If so, I can help most of you.

If your down payment on a new home in Richwoods or Lawler Park is less than 20 percent of the appraised value or the sale price, you must obtain private mortgage insurance, known as PMI, with your lender.

This allows you to bring to the closing table a smaller down payment because your lender is now protected against any default on the loan by you.

PMI charges vary depending on the size of the down payment and the loan, but they typically amount to about one-half of 1 percent of the loan, according to the Mortgage Bankers Association of America. They are also not tax deductible like interest.

Here is an Example on a $400,000 sales price:

Let’s say you put down 10 percent or $40,000. The lender multiplies the 90 percent loan, or $360,000, by .005. The result is an annual PMI of $1,800 which is divided into monthly payments of $150.

Most home buyers need PMI because 20 percent of the sale price on a home is a lot of money; for instance, that’s $80,000 on the $400,000 home. Home buyers must maintain the PMI premiums until they cross that one-fifth-of-principal threshold, a process that can take years in longer-term mortgages.

But I have a way to reduce that extra $150 a month to $0. Not every one of my clients will qualify, but the majority of them do and already have.

If you would like my help or guidance when you go to the builder to write a contract, call me directly at (469) 733-2723 to use me as your realtor. And if you do, you can either choose my 4% Total Rebate Incentive or choose to wipe out your PMI!

Brad Holden – Holden New Homes – Texas Licensed Real Estate Broker