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Loans Without Private Mortgage Insurance (PMI)

Oh, the dreaded "PMI". If you put less than 20% down, you have to deal with the fact that you may have to pay private mortgage insurance. This insures the lender that you will make your monthly payment, and does nothing for you. If you don't have 20% to put down, you still can avoid PMI by doing a combo loan (80% first mortgage and 10-15% second mortgage), or use one of our PMI programs where we pay the mortgage insurance premium for you.

Certain factors contribute to how much expense is added to your monthly payment due to PMI. These factors include loan amount, amount of down payment, and credit score.  As an example, let's assume you put 5% down and have good credit. If you borrow $200,000, your monthly PMI expense would be $130.00.  So, as you can see, it can be a relatively substantial cost.

Once again, this is a pretty complicated decision, so have one of our mortgage specialists show you the benefits of each different option.