74 — Q
UALIFIER
P
LUS
®
III
FX
Finance Mortgage Insurance compared to a Combo Loan
Financed Mortgage Insurance loans allow for higher than 80% LTV
on a straight first loan because the Mortgage Insurance added to the
loan amount. Another benefit to the Financed MI loan is the interest
is tax deductible. In many cases the Financed MI loan may be better
than a combo loan.
We will compare a Financed Mortgage Insurance loan to a Combo
Loan, with a loan amount of $90, 000.
FIXED-RATE
FINANCED
COMBO LOAN
MI LOAN
(1st TD – 2nd TD)
Loan Amount
90,000 90,000
Interest
6%
6% – 8%
Term
30
30 year – 30 year
MI
.62% --
LTV
90%
80% – 10%
In order to compare a financed mortgage insurance loan to a combo
loan, you must first calculate the monthly MI premium and enter it as
mortgage insurance as you would a standard fixed-rate loan (do not
add the Financed MI Premium to the loan amount in this comparison).
STEPS
KEYSTROKES
DISPLAY
1. Find the Financed Mortgage Insurance premium:
Clear calculator
o o
0.00
Multiply loan amount x MI
9 0 ) x • 6 2 % =
558.00
2. Find Monthly MI Premium and enter it into the Mortgage
Insurance key:
Enter financed MI into
Loan Amount
l
558.00
Enter Term in years
3 0 T
30.00
Enter annual Interest rate
6 ˆ
6.00
Calculate monthly MI
premium
p
“run” 3.35
Enter monthly MI premium into
mortgage insurance
= s b s 9
3.35
— DO NOT CLEAR CALCULATOR —
3. Enter loan values:
Enter Loan Amount
9 0 ) l
90,000.00
Enter Term in years
3 0 T
30.00
Enter annual Interest rate
6 ˆ
6.00
Calculate monthly P&I
Payment with MI
p p
“run” 542.94
(Cont’d)
