Hefty Premiums for 30-year Insured Amortizations May Be Worth It

Starting August 1, first-time buyers eyeing new construction get a new trick to trim their payments: 30-year insured amortizations.

But this magic has a price. Bumping the standard 25-year amortization up to 30 years jacks up the default insurance premium by 75 bps—assuming a high-ratio mortgage.

On a 5% down mortgage, that's a hefty 18.75% increase versus the standard 4% premium. We're talking $750+ more per $100,000 borrowed.

Is it worth it? Let's break it down...

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