Thanks to increased equity, home improvements and a competitive market, most move-up buyers have enough money from the sale of their previous home to put 20% down on their next house. But is that always the best choice?
Your move-up buyers may be interested in learning how putting down 15% or 10% allows them to keep more of the profits from the sale of their current home for other purposes, such as:
- Beefing up their retirement account
- Paying back student loans or adding to a child’s college fund
- Buying furniture and appliances for the new house
- Turning their new home into their dream home through improvements
Show borrowers how 15 can be greater than 20
Many borrowers believe 20% down on their home purchase is their only option. But if they put 15% down instead, they could hold on to the difference for savings, for investments or even for home improvements. Borrowers who take advantage of MGIC monthly MI could also benefit from lower closing costs. And, because MI can usually be cancelled, it’s not a permanent monthly expense.
MI can help move-up borrowers move up to more
Who says you have to go from a small house to a medium-sized house before you can afford your dream house? Show your borrowers how they can increase their purchasing power and expand their home search by putting down less than 20%. Your borrower may be surprised to see that for approximately the same down payment amount, they may be able to buy a lot more house — assuming, of course, that the borrower can afford the higher monthly payment that accompanies the larger home price.