Contact: MICA (202) 682–2683
Email: pat@micadc.org
New Spanish-language Website Highlights Benefits of Private Mortgage Insurance
WASHINGTON, D. C. August 15, 2007 - Mortgage Insurance Companies of America (MICA) today launched a colorful and interactive new Spanish-language website www.PrivateMI.com/enEspanol/. The website features images and information designed to raise awareness of the benefits of private mortgage insurance (PrivateMI), including the fact that premiums are tax deductible for the first time in 2007 for many borrowers.
"For over 50 years, the private mortgage insurance industry has made homeownership a reality for more than 25 million families by helping to insure low-down payment mortgages," said Kevin D. Schneider, President of U.S. mortgage insurance for Genworth Financial and President of MICA, the industry's trade association. "But more can be done to promote homeownership among Hispanics, who have a homeownership rate that is 20 points below the national rate. This website provides Spanish-speaking home buyers with information about purchasing homes and financing options that can help close the gap."
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 many low to moderate income Americans, more people can now afford to buy the home they have 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 Spanish-language web site will provide consumers, loan originators and real estate agents with a valuable tool to make informed decisions and recommendations."
Lenders usually require mortgage insurance on loans when the buyer does not have at least 20 percent for a down payment. In today’s market, the median price of a home in the U.S. is about $220,000, which would require $44,000 for a 20 percent down payment.
The website provides consumers with online calculators to answer questions catering specifically to the buyer’s financial situation. For example, one calculator allows home buyers to determine how soon they can buy a home using a loan with 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 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," Schneider said. "The more we can educate consumers about the benefits and rewards of PrivateMI, the faster we can help them realize their dream of becoming homeowners."