Florida home. Johnis a loanofficer who followed his own advice when he purchased their new homewith a conventional loan andprivate mortgage insurance. The low down paymentallowedhim to keep somecashin reserve. (NAPSA)—John and Jennie were renting a small house in Delray Beach, Florida whentheperfect house came on the market: only four blocks from their rental home,3,400 square feet, with five bedrooms and the biggest yard in the neighborhood. Anexcellentfit for their Why They DidIt “Jennie and I could have put the full 20 percent down on this house. But manyyears ago, when I was new at this job, I helpeda car dealer purchase a home. He had $75,000in a savings John has been a loan officer for 18 account, but he said we couldn't consider that to qualify him. He explained that washis ‘sleep at night’ account gage. He often advises his clients to consider a conventional mortgage with months of expenses in the bank in case he had a bad sales month or two,” family ofsix. years and currently works for US Mort- private mortgage insurance (PMI)— especially if they have a 5 to 10 percent down payment and goodcredit score. PMIis the private sector's alternative to the Federal Housing Administration (FHA) mortgage insurance, a govern- mentprogram backedby taxpayers. “T explain how conventional mortgage with PMIcould betheirfastest and least expensive route. Many borrow- ers often think that FHA is their only option?Johnsaid. WhatJohn AndJennie Did because he always had six to eight John said. In the process of opening his own US Mortgage branch, John wanted to make sure he had plenty of capi- tal reserves. He put less money down andleft the restin the bank in his own “sleep at night” account. Johnsaid, “I have a big family and I don't want to worry. I guess you could say that PMI helps meto regularly get a good night's sleep” Learn More He followed his own advice and Are you ready to purchase a home with a low down payment? Or should cent down paymentand a conventional mortgage with PMI. It wasthe best way to go for his family—but not because www.mgic.com/buynow. Another good resource for home buyers is www. purchased his new home with a 5 perthey didn’t have enough saved up. you wait to save more? You can find out with the aid of the calculator at readynest.com.
