PMI - The New Rules

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PMI or Private Mortgage Insurace is a way for lenders to protect themselves in higher risk loans. PMI usually kicks in when a loan is more than 80% of Loan to Value (LTV). There are alternatives to PMI but make sure you know of the new tax benefits that PMI allows on purchases or refis made after January 1, 2007.

One caveat concerning the new rules and tax deductibility of PMI. It is only available for new purchases or acquisitions. Refinances are not eligible for tax deductions under the new tax laws.

PMI, also known as Private Mortgage Insurance is a type of insurance that protects the lender in the event that you are unable to make your mortgage payments as scheduled and your home is foreclosed upon. This insurance does not protect you the buyer or save you from losing your home, but it protects the lenders investment. PMI is normally required anytime you do not have 20% down or 20% equity in your home. There are some ways around PMI that may be able to save you money off of your monthly mortgage payment, however with the new PMI rules that went into effect on January 1st of 2007, you should consider possibly wanting to pay PMI versus the other ways to get around PMI. One such way to avoid paying PMI, probably the most common way, is to obtain a combo loan. A combo loan is a first and second mortgage, where your first mortgage is 80% of the value of the home and the second mortgage is the remaining percentage of the loan that you are over 80%. These types of loans are still going to be very good options for many people, but it is going to depend on each person's financial goals on which option is going to be best for them. Ask your mortgage professional for more information about PMI and the new rules and also if PMI might be right for you.

The biggest deductions you get under the new PMI rules is when your AGI (adjusted gross income) is under $100,000 for couple files jointly or $50,000 for filing as a single person. You are then able to deduct 100% of the PMI you have paid over the course of the year. Above that amount then your deduction decrease by 10% for every $1000 AGI above the $100,000 or $50,000 cap. In other words, the deduction disappears for those couple who have a AGI above $110,000 or single filers above $60,000.

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Feeling Like a Square Peg in a Round Hole? Super Jumbo mortgage lending is a highly specialized field, requiring a level of expertise gained only through the experience of handling a large number of multi-million dollar transactions.  If you're tired of lenders trying to "fit" your unique financial needs into their conventional lending comfort zone, consider becoming a Private Client of R1.

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Interest Only & Pay Option from $650K to $40 Million

Feeling Like a Square Peg in a Round Hole? Super Jumbo mortgage lending is a highly specialized field, requiring a level of expertise gained only through the experience of handling a large number of multi-million dollar transactions.  If you're tired of lenders trying to "fit" your unique financial needs into their conventional lending comfort zone, consider becoming a Private Client of R1.

Get More Information from the Super Jumbo Experts. Call (800)290-4770 or Fax (800)517-7095

Where is Your Home?	Start Here Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington, DC Washington State West Virginia Wisconsin Wyoming		How Much is it Worth?	Below $650,000.00 $650,000.00 $700,000.00 $750,000.00 $800,000.00 $850,000.00 $900,000.00 $950,000.00 It's OK to Estimate $1.00 Million $1.10 Million $1.20 Million $1.30 Million $1.40 Million $1.50 Million $1.60 Million $1.70 Million $1.80 Million $1.90 Million $2.00 Million $2.25 Million $2.50 Million $2.75 Million $3.00 Million $3.50 Million $4.00 Million $4.50 Million $5.00 Million $6.00 Million $7.00 Million $8.00 Million $9.00 Million $10.00 Million $12.50 Million $15.00 Million $17.50 Million $20.00 Million $25.00 Million $30.00 Million $35.00 Million $40.00 Million or More
How Can We Help You?	Take Cash Out Improve Cash Flow Fix Interest Rate Consolidate Debt Purchase a Home Construction Loan Non-USA National		Desired Loan Amount	Below $650,000.00 $650,000.00 $700,000.00 $750,000.00 $800,000.00 $850,000.00 $900,000.00 $950,000.00 It's OK to Estimate $1.00 Million $1.10 Million $1.20 Million $1.30 Million $1.40 Million $1.50 Million $1.60 Million $1.70 Million $1.80 Million $1.90 Million $2.00 Million $2.25 Million $2.50 Million $2.75 Million $3.00 Million $3.50 Million $4.00 Million $4.50 Million $5.00 Million $6.00 Million $7.00 Million $8.00 Million $9.00 Million $10.00 Million $12.50 Million $15.00 Million $17.50 Million $20.00 Million $25.00 Million $30.00 Million $35.00 Million $40.00 Million or More
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