How to get no PMI on you Mortgage
Private Mortgage Insurance also known as PMI, is a requirement for most mortgages where the buyer is putting less than 20% for a down payment on a home. PMI provides a lender security in the loan. With PMI, your monthly payment can increase by $75 to about $125 for every $100,000 borrowed.
Here at Northeast Financial we have numerous products with no PMI that will allow the you, the borrower, to get a mortgage even if you make a down payment of under 20% without taking on the additional cost of the PMI. This is done through a Lender paid PMI program which is outlined to assist you with your purchase and benefits that provide you with an advantage.
- No PMI gives you greater buying power when looking for your dream home.
- You can borrow as much as 95% of the purchase price of the home.
- Loan Programs customizable to fit your needs!
- Requesting for cancellation of PMI when you reach 20% equity not needed!
FHA and Conventional
With FHA the mortgage insurance remains in effect for the life of the loan. Typically, buyers refinance into a Conventional mortgage at about 4-7 years into the FHA mortgage. This is when they typically reach 20% equity position into their home. If the homebuyer places a 10% down payment on an FHA mortgage, then the buyer’s PMI would remain in effect for 11 Years, if the homeowner is current in their mortgage payments.
Conventional is cut and dry. Either you put 20% down or you wait until you reach 20% equity position. Making an extra payment a year can help a homeowner achieve that much sooner than expected.