A Word of Encouragement to Corporate Leaders: Offer Employees a Mortgage Insurance Reimbursement
At Redwood, our corporate mission is to make quality housing, whether rented or owned, accessible to all American households. Through our leading presence in the mortgage market, we’ve seen firsthand across the country how difficult it is for many people to pull together a down payment and afford a home. In California, where much of our workforce resides, it’s especially difficult, with the median detached home price hovering around $700,000.
So many prospective homeowners simply can’t afford a traditional 20% down payment. An essential avenue for them is often mortgage insurance (MI), which makes it possible to purchase a home with a smaller down payment. But paying a monthly premium on top of a mortgage is a meaningful burden for many, particularly people of color and younger people. For every $100,000 borrowed, MI typically adds $30 to $70 to a homeowner’s monthly payment.
At Redwood, we want everyone on our team to have a path to home ownership, if they so choose. So, we’re introducing a new benefit for our employees. As part of a refreshed suite of standard employee benefits, we are reimbursing the cost of MI to help employees put down roots through home ownership. We believe the new benefit will increase employee retention, attract a more diverse workforce and enhance employee wellbeing.
If you’re a corporate leader focused on environmental, social and governance objectives, consider adding MI to your standard package of benefits. By doing so, you will enhance employees’ sense of security and wellbeing. You’ll also be making a deep commitment to building generational wealth and working to solve our country’s affordable housing crisis.