MILWAUKEE, Nov. 10, 2017 /PRNewswire/ -- Mortgage Guaranty Insurance Corporation (MGIC) today announced the release of its updated Buy Now Vs. Wait calculator, featuring enhanced mobile usability and the addition of a Spanish version.
The mobile-friendly calculator helps potential first-time homebuyers assess the financial effect of purchasing a home with less than 20 percent down, as well as the costs associated with waiting until they have a larger down payment. The formula considers income, price of the home, anticipated appreciation of home price, cost of rent, and interest rates to provide a snapshot of the immediate and 20-year pros and cons of buying versus waiting.
"Not only was the calculator user-friendly but it took the complication out of comparing the pros and cons of buying versus renting," said Noel Honeck, new homeowner. "The idea of buying a house is exciting for first time home buyers but can also be very stressful. In other words, how does someone figure out where to start? Before the decision was made to buy my house, I needed to know if it was worth the investment and this tool made that first step easy to take."
The decision to create a Spanish version of the tool was an easy one to make. While the overall rate of homeownership has declined in the United States--63.4 percent is a 51-year low–the rate for Hispanic homebuyers has increased from 45.6 percent in 2015 to 46.0 percent in 2016. Since 2000, the Hispanic population has added approximately 3.1 million new homeowners to the nation's total, a 73 percent increase, according to the Hispanic Wealth Project in San Diego, Calif. Today, almost half of all first-time homebuyers are Hispanic.
"The Hispanic buyer is a significant driver of the nation's real estate market," said Margaret Crowley, vice president of Marketing and Customer Experience at MGIC. "Our company's mission is to help people buy their first home, so it's critical for us to be responsive to the needs of all potential homebuyers. This takes just a minute to complete, but a lot of people are surprised by the result they get -- it sheds a light on the real numbers behind the decision. We're delighted to help make this process easier for people."
MGIC provides private mortgage insurance (PMI), enabling buyers to get the keys to their home with less than 20 percent down, or to be smart with their savings, setting money aside for renovations or furniture. Other buyers take advantage of PMI to afford a home in a desired neighborhood or school district sooner than they could if they had to make a full 20 percent down-payment.
MGIC's Buy Now Vs Wait calculator is available in English and Spanish on the company's website at https://www.mgic.com.
MGIC (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, Puerto Rico, and other locations helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality. At September 30, 2017, MGIC had $191.0 billion of primary insurance in force covering approximately one million mortgages.
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