Private Mortgage Insurance (PMI):

A HUGE MONTHLY/YEARLY COST REDUCTION FOR A HOME-BUYER WITH AN EQUITY POSITION.

Mortgage laws require that all mortgage loans bundled to be sold in the investor market (such as Fannie Mae & Freddy Mac) must have a cost 20% or more below the appraisal, a maximum of 80% of the appraised value.

Most people do NOT have the 20% required for a down-payment on their new home, so they pay monthly to an insurer that guarantees any amount needed to meet the 20% required.

This is private mortgage insurance, or PMI.

On a $200,000 house, a 10% loan to a borrower would cost them hundreds per month or thousands per year, literally.

Working with Castle Gate Homes, utilizing the Builder Assisted program a buyer can have all or part of the PMI eliminated.

For example: Instead of a mortgage requiring $1400 per month, it could be $1175 per month simply by eliminating the PMI, because your home was built with equity (20% required down-payment to the bank- paid to the bank by the fact that the market VALUE of the home is GREATER than the loan you acquired to build the home).  This example shows a $225 per month savings, $2700 per year, and a $40,500 savings over 15 years!