48 Meriden Rd, Suite 1, Middlefield, CT 06455

No PMI Mortgage Options for Connecticut Borrowers

No PMI Mortgage Options

Obtaining a No PMI Mortgage (Private Mortgage Insurance) may seem impossible but there are ways to avoid that added monthly expense.

What is PMI?

PMI (Private Monthly Insurance) is often required by lenders as part of a conventional mortgage to protect them in case you end up in foreclosure. PMI is protection for a lender but an added expense for a borrower. FHA (Federal Housing Administration) and VA (Veterans Affairs) loans are backed by the government. If you default on your loan, the government protects you. For a conventional mortgage, private mortgage insurance is a protector – for lenders, not borrowers. If a borrower defaults on their loan, PMI makes sure lenders get their money.

How to Avoid Paying PMI:

USDA Loans : First of all, USDA loans offer 100% financing for qualified borrowers in ‘rural’ areas. This program requires a ‘guarantee fee’ that is paid upfront and monthly.  It is less than conventional PMI and decreases annually.  As a result, this loan type is a better alternative than paying traditional PMI.  Even more, many borrowers refinance these types of loans when they are at 80% LTV in order to get rid of PMI.

20% Down Payment: Borrower’s can avoid PMI insurance by putting down 20% for their down payment. Taking the time to save up for a down payment of 20%, may be worth the money spent over the life of the loan on PMI payments

Lender Paid PMI: A popular new home loan product is lender paid PMI. Lenders pay the mortgage insurance for the borrower in turn for a slightly higher interest rate.

Please contact me today if you have any questions about doing a NO PMI Mortgage. I will be happy to work with you every step of the way!


Kristina L. Refsbeck


Company NMLS#117273

Cell: 203-293-8377



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