Low-Down-No-Down

In addition to the benefits of the upfront savings, borrowers won’t pay for private mortgage insurance (PMI) either. That means a lower monthly payment, which adds to affordability. But before we go too much further, let’s breakdown the math. We’ll use a $250,000 assumed purchase price. This is a 30-year fixed loan with an interest rate of 6%.

• You bring $2,500 for a down payment (.01 × $250,000 = $2,500).
• Captain Mortgage covers 2% of the loan amount (.02 × $250,000 = $5,000).
• Your monthly principal and interest payment is $1,453.91.
• Save up to $245 per month by not having to pay for mortgage insurance.

The $6,000 we cover means lower out-of-pocket costs at closing for you…and who wouldn’t like $245 per month back in their wallet?

In fact, ordinarily, when you do have to pay mortgage insurance, you can’t request it comes off until you reach 20% equity. It takes an average of 7 years before mortgage insurance is removed from a loan. Based on this, clients would be saving an average of $20,500 over the same period.

The Bottom Line

We know that the down payment is one of the biggest obstacles home buyers face when they can otherwise afford a mortgage payment. Low Down – No Down allows you to get a mortgage by putting as little as 1% down. Combined with a 2% grant from Captain Mortgage, you start with 3% equity. Mortgage insurance is not charged to you.

• This is available to those qualifying with less than 80% of the area median income level who have qualifying credit scores of 620 or better. You can buy a single-unit primary residence nationwide.