A new myth-busting angle on mortgage finance
Many borrowers believe 20% down on their home purchase is their only option. But you know it’s not.
Take this opportunity to reinforce your role as a Trusted Advisor by offering a slightly different angle to your borrowers who have 20% to put down: Ask them to consider putting 15% down instead.
Their monthly principal and interest payment will go up a bit, and they’ll need to purchase a small amount of MGIC mortgage insurance. BUT they get to hold on to the difference… in their savings… for investing… for making home improvements.
There are numerous borrowers who could take advantage of this new line of thinking. Here are some reasons why they should:
1 National Association of Home Builders special study, Spending Patterns of Home Buyers, July 2017
2 Federal Reserve Board of Governors Report, May 2017
3 Morstat data
4 ValueInsured, March 2018
Even if your borrowers don’t take advantage of the option, they’ll come away understanding you’re working in their best interests. And that translates to lasting relationships and the referrals that come along for the ride.
To learn more about our 15 is Greater Than 20 program, watch our 30-minute webinar recording.