Available Loans without PMI

For many individuals and families who are looking at purchasing a home, or any other real estate, private mortgage insurance (PMI) can be a major cost factor. Here are some basic steps for getting rid of this burdensome insurance element.

1. Learn about the use of private mortgage insurance. As mentioned, this insurance policy really protects the lender. It’s just a way of further ensuring that the borrower will not default on the loan. Since most serious home buyers have already done the research to make sure they will not have to default, PMI can be just another expensive extra when responsible buyers go to settlement. The first step in getting rid of PMI is to understand that in most cases, you don’t need this coverage, and if you can get out of it, it generally works to your advantage.

2. Look at the cost of private mortgage insurance. A private mortgage insurance policy can be as much as several thousand dollars tacked onto your mortgage or sale price. When you have a good idea of what PMI will cost you, you’ll be better able to make decisions about whether it’s worth trying to cut this extra cost from your real estate lending contract.

3. Collect the largest down payment possible. If you can provide 20 percent or more of the entire loan amount up front, you can avoid private mortgage insurance entirely. Look at all your assets and cash flows to see if you can use this common strategy for avoiding this insurance.

4. Look to see if you qualify for a Piggyback Mortgage. This splits your loan into 2 mortgages and can be structured so PMI insurance is not needed for your loan.

For any questions do not hesitate to reach out to me at the number below. We offer several solutions that do not include PMI and as well if you need to have PMI – we offer several inexpensive options. Call me today.

Craig 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