Health & Fitness
HomeTrust Mortgage Introduces “Half Time Home Loan” for First-Time Home Buyers
New Mortgage Plan Halves Payback Period, Saves Thousands in Mortgage Insurance Costs
Schaumburg, IL – HomeTrust Mortgage Corporation, a Schaumburg, IL-based mortgage banker, announced their “Half Time Home Loan” mortgage plan today. The Half Time Home Loan enables first time home buyers to pay off a mortgage in half of the time of a regular mortgage and save tens of thousands of dollars in interest and mortgage insurance.
“Our Half Time Home Loan allocates a buyer’s monthly payment toward principal reduction and away from mortgage insurance payments,” said Evan Geiselhart, President of HomeTrust Mortgage. “For example, on a $200,000 mortgage, first time homebuyers will save over $100,000 in interest and mortgage insurance fees and pay off their loan in half the time.”
Typically, first time home buyers finance their purchase through an FHA (Federal Housing Administration) mortgage. This government-backed plan allows for a 3.5% down payment. However, FHA financing also requires MIP (Mortgage Insurance Premium) for FHA borrowers, which can often add in excess of 20% to a monthly loan payment.
Find out what's happening in Glen Ellynwith free, real-time updates from Patch.
Additionally, as of June 1, 2013, FHA borrowers will not be allowed to drop Mortgage Insurance once they have over 22% equity in their home.
“Our mortgage bankers have noticed that first timers are buying bigger homes than they used to. Since values have dropped so much, and since rates are so low, first-timers are buying what used to be a move-up home,” continued Geiselhart. “We’re seeing a better-qualified buyer these days.”
Find out what's happening in Glen Ellynwith free, real-time updates from Patch.
It is these better-qualified first time buyers that can benefit from a HomeTrust Half Time Home Loan. With a Half Time Home Loan, a well-qualified borrower makes a 5% down payment and HomeTrust pays the PMI (Private Mortgage Insurance) as a lump-sum premium up front on the borrower’s behalf. Then, HomeTrust funds the buyer’s purchase on a 95% conventional mortgage with no monthly PMI.
A Half Time Loan monthly payment averages 18% higher than an FHA loan. Yet, Geiselhart notes, “the borrower also saves tens of thousands of dollars in interest and MIP over the life of the loan and the mortgage is paid off in half of the time of a standard FHA 30-year fixed loan.”
First time home buyers in the market for a mortgage are invited to visit www.halftimeloan.com to use a simple, easy-to-use tool that calculates how much they would pay monthly and over the life of a loan with a Half Time Home Loan as compared to an FHA-financed loan.
