Contact: MICA (202) 682–2683
Email: pat@micadc.org
New Website Highlights Benefits of Private Mortgage Insurance
WASHINGTON, D. C. January 22, 2007 - Mortgage Insurance Companies of America (MICA) today launched a colorful and interactive new website www.PrivateMI.com featuring images and information designed to raise awareness of the benefits of private mortgage insurance (PrivateMI), including the fact that for the first time premiums are tax deductible in 2007.
"For over 50 years, the private mortgage insurance industry has helped insure low-down payment mortgages, making home ownership a reality for more than 25 million families. Now that premiums are tax deductible in 2007 a loan with PrivateMI is truly today's smart choice in mortgage finance for low- and moderate-income families," said Steve Smith, Chief Executive Officer of The PMI Group, Inc. and President of MICA, the industry's trade association.
Compared to other financing options, a mortgage loan with PrivateMI is often more affordable and has fixed and predictable premiums. It also can be canceled when no longer needed.
In addition, PrivateMI premiums are now fully tax deductible for borrowers who buy or refinance a home this year if their adjusted gross income is $100,000 or less. Families with incomes of more than $100,000 and up to $109,000 will be eligible for a reduced deduction. Since PrivateMI is now deductible for low to moderate income Americans, more people can now afford to buy the home they've always wanted.
"It is well documented that most home buyers turn to the Internet as they begin their search for houses and mortgage financing," said Suzanne C. Hutchinson, Executive Vice President of MICA. "By highlighting the affordable, predictable, cancelable, and tax deductible benefits of a loan with PrivateMI, our redesigned web site will provide them a valuable tool to make informed decisions."
The website provides consumers with online calculators to answer questions catering specifically to their financial situation. For example, one calculator allows home buyers to determine how soon they can buy a home using PrivateMI with little or no money down versus a 20 percent down payment. The site also assists buyers in comparing PrivateMI with other financing options and includes information on how owners can cancel PrivateMI when it is no longer needed.
Among the many features on the site is an easy-to-follow chart outlining the home buying process, informative testimonials featuring consumers who used PrivateMI to become homeowners and a special section offering useful resources for members of the news media.
"We wanted the website to provide people with accurate and timely information as they look to buy a home and finance their purchase," Smith said. "The more we can educate consumers about the benefits and rewards of PrivateMI, the faster we can help them become homeowners."
MICA is the trade association representing the private mortgage insurance industry. Its members help loan originators and investors make funds available to home buyers for low-down payment mortgages by protecting these institutions from a major portion of the financial risk of default.