CNB offers new options for mortgage borrowers
Central National Bank recently introduced a new mortgage insurance.
The program, MI Free Loan, is lender-paid mortgage insurance (MI). The program will reduce monthly mortgage payments and offer "piggyback" mortgage structures while producing the same tax benefits.
"Piggyback" mortgage structures allow borrowers to obtain second mortgages at purchase which reduces first mortgages loan-to-value ratios to 80 percent, eliminating the need for MI.
"Piggybacks" have been marketed as a way to minimize monthly mortgage payments and maximize mortgage interest deductions. While they have grown in popularity, they involve the origination and servicing of two separate loans. MI Free Loan eliminates the need for two loans resulting in a single, affordable mortgage.
More information can be requested from Central National Bank.
