ADA Member Advantage announced March 22 that Laurel Road, its endorsed mortgage provider, is increasing the financing limit on mortgages for dentists from $750,000 to $1 million, without requirement for a down payment or a private mortgage insurance.
The ADA Member Advantage endorsement already 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 purchase price of the home. 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 in the event that the borrower defaults, and is on average between 0.55%-2.25% the cost of the original loan. This 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.