No PMI Loans - mortgagesfirst.com

No PMI Loans
Mortgages First offers tax-deductible program solutions to the Private Mortgage Insurance (PMI) dilemma. PMI is required by most lenders when the down payment is less than 20 percent of the purchase price of the home. While PMI protects lenders in the event of a default situation, it can add considerably to monthly payments. And a 20% down payment isn't always possible.
The creative solution to this requirement often results in a lower monthly payment than on loans which carry PMI. Many of our lenders can offer you a 1st and 2nd mortgage with up to a 95% combined loan to value without any PMI. This maximizes your tax deductibility while also lowering your monthly payments. If you choose to pay off the second mortgage early you will again reduce the monthly payments. This option is very popular with applicants who receive year end bonuses. Another popular solution is the lender funded PMI mortgage, lenders offer to pay the PMI and charge you a marginally higher interest rate. Advantage of this program is you only have one loan, no 2nd mortgage and also maximizes your tax deductibility.
Another popular use of this 1st and 2nd mortgage product is to take what would normally be a jumbo loan and reduce it to a conforming loan size. Again, you will be eliminating PMI while saving at least 3/8 on your rate by switching out of the jumbo category. Many Mortgages First Associates applicants have compared the numbers and decided that the no PMI alternative is a win-win situation.
Please contact us with your PMI questions. We'd be happy to explain how a No-PMI alternative can work for you.

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