Laurel Road, the ADA Member Advantage-endorsed mortgage provider, has increased the financing limit on mortgages for dentists.
ADA Member Advantage announced that Laurel Road, its endorsed mortgage provider, is increasing the financing limit on mortgages for dentists from $750,000 to $1 million, without the requirement for a down payment or private mortgage insurance.
The ADA Member Advantage endorsement gives ADA members access to rate discounts and financing options without monthly mortgage insurance payments on primary residences.
In addition, Laurel Road’s online mortgage platform can help speed up the closing process for members looking to purchase a new home or refinance an existing mortgage, according to ADA Member Advantage.
The program also covers a rate discount on other loan options for second homes and investment properties.
According to ADA Member Advantage, traditional mortgages often require that borrowers who want to avoid paying monthly mortgage insurance payments put down at least 20% of the home’s purchase price.
So, for a home that costs $180,000, borrowers must pay at least $36,000 to avoid the payments. The payment insures the mortgage for the lender if the borrower defaults and is on average 0.55%-2.25% the cost of the original loan.
The money isn’t applied to the principal or interest, so it represents a substantial additional cost to homeowners.
ADA members who would like to check their rates or speak with a representative from Laurel Road can visit laurelroad.com/ada.