Can I get a mortgage without mortgage insurance?
Yes, you can get a conventional mortgage without any mortgage insurance.
Typically, purchasing a home with a down payment of less than 20% will mean that you are paying mortgage insurance every month with your home loan. While private mortgage insurance, or PMI, could make getting a mortgage easier for borrowers who may not be able to make a 20% down payment, it does mean more money you are spending on your home loan.
Getting a mortgage without mortgage insurance can free up extra funds that a borrower could save1, put toward their mortgage principal, invest or spend how they see fit.
While there are mortgage options available that avoid mortgage insurance, they may come with additional qualifications. Several lenders, including Guaranteed Rate Affinity, offer qualifying borrowers conventional loans with down payments under 20% that do not include any mortgage insurance.
To start the mortgage process today and see if you qualify for a home loan without any mortgage insurance, speak to a Guaranteed Rate Affinity Loan Offier today..
What is PMI?
Private mortgage insurance protects the lender and helps make homeownership possible for borrowers who cannot afford a larger down payment.
PMI will increase monthly mortgage payments. However, there are options for those looking to avoid putting more toward their mortgage payments.
How much does PMI typically cost?
The exact PMI cost will vary based on your credit score and debt-to-income (DTI) ratio but typically ranges from $30 to much as $100 for every $100,000 you borrow. Your PMI cost will be added to the mortgage payments you will have to make each month.
Is PMI required for every mortgage?
Private mortgage insurance isn’t required for all mortgage types, just certain conventional home loans.
PMI is required for conventional loans where the borrower makes a down payment of less than 20%. FHA loans do come with a similar mortgage insurance called MIP, or mortgage insurance premiums. VA and USDA loans do not come with PMI or MIP.
How long is PMI required if it’s included?
If included, PMI is required until you reach a minimum of 20% equity in your home.
Once your home equity reaches 20%, you will be able to request that your lender remove PMI. If you do not talk to your lender when you reach 20%, your PMI will be removed automatically at 22% equity.
How can I remove private mortgage insurance?
You can remove private mortgage insurance by talking to your lender after gaining 20% home equity.
You can get this equity by making home improvements, market values in your area increasing or by paying off your mortgage. If you make home improvements or your home value increases, your lender may request an appraisal.
When your home equity gets to 22%, you don’t typically need to talk to your lender to remove any PMI you may have.
You can also look into getting a home loan without private mortgage insurance or refinancing your current home loan to remove any mortgage insurance you may have.
Is there a mortgage option that doesn’t require PMI at the start?
A few lenders, including Guaranteed Rate Affinity, offer loan options with no private mortgage insurance to qualified buyers, regardless of down payment amount.
Getting a mortgage that doesn’t have PMI, even if you aren’t able to make a 20% down payment, could save you money at closing and each month.
How can I start the mortgage process today?
If you are looking to get a mortgage today, you can start the process by finding a trusted lender and talking to a professional Loan Officer.
If you are looking to get a conventional loan with a down payment under 20% and without paying any PMI each month, you will need to make sure you choose the right lender. Guaranteed Rate Affinity is one of few lenders offering qualifying borrowers the opportunity to skip PMI entirely — no matter how much they put down. Once you have chosen a lender, you can start your application and be connected with a Loan Officer who could tell you if you qualify for skipping PMI on your mortgage.
Start your mortgage process with a trusted lender today.
1Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Guaranteed Rate Affinity for current rates. Restrictions apply.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
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