Connecticut Mortgage: How to Get a No PMI Home Loan

No PMI Home Loans

 

PMI stands for Private Mortgage Insurance.  Lenders, banks and Mortgage Companies require PMI for loans that go over 80% of the homes value.  The purpose of PMI is to protect the lender in case of default.

Most borrowers think they have to have mortgage insurance that they have no other options but to pay the insurance premium each month.  Wait for the time when they have enough equity to have the premium removed.  In some cases this can take several years.

 

For home buyers and home owners who do not have the reserves for the 20% down payment or those who are refinancing there are other options.  These options are loans that do not have PMI.

As a prospective home buyer or someone looking to refinance what you are able to do is include the cost of the mortgage insurance in the loan itself.  This is called the Lender-Paid Mortgage Insurance (LPMI) option. The lender will include the amount of the insurance in the loan itself. This usually requires a slightly higher interest rate, but the overall cost over time winds up being less than paying PMI monthly.

Some advantages are:

  1. Buying Power

You can afford a more expensive home even if you haven’t saved up 20% for a down payment. Get into the home you want now by putting down less – without worrying about PMI!

  1. More Cash on Hand

If you put 20% down on a $300,000 home, that’s $60,000. If you put as little as 3% down, that’s $9,000. By putting less down, you could save as much as $51,000 for home upgrades, renovations, repairs, new furniture – the possibilities are endless!

  1. Savings

Money paid as mortgage interest can be claimed on your tax returns at the end of the year, but money paid for monthly PMI cannot.

  1. Simplicity

PMI Advantage simplifies the process because you don’t need to worry about a monthly PMI payment.

If you have any questions or would like to see if you qualify for a NO PMI loan please feel free to contact me at 860-334-1354 or email craig@northeast-mortgage.com

Thanks,

 

craig picCraig Thibeau
Senior Loan Officer
North East Financial Middletown, CT
Ph 860-334-1354
NMLS  398576 Company NMLS 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com

 

 

1% down disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

Borrower contributes 1% down, lender contributes 2% down of the loan up to $5,000.00 for the down payment, and the borrower is responsible for any difference to get the required 3% down.  The principal and interest payment of a 200K 30 year Fixed Rate Loan at 4.375% and 97% loan to value is 998.57 with 0 points due at closing.  The annual percentage rate is 4.633%.  The principal and interest payment does not include property taxes and home insurance premiums, which can result in a higher actual monthly payment.  Rates current as of 06/20/2017

 

 

3% down disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

The principal and interest payment on a 200K 30 year Fixed Rate Loan at 4.375% and 97% loan to value is 998.57 with 0 points due at closing.  The annual percentage rate is 4.433%.  The principal and interest does not include taxes and home insurance premiums, which can result in a higher actual monthly payment.  Rate current as of 06/20/2017