PMI stands for private mortgage insurance. If you are applying for a conventional loan and don’t have 20% of the purchase price to hand over for the down payment, you will have to pay the PMI. PMI usually amounts to between 0.5% and 1% of the home’s purchase price and is normally attached to your monthly mortgage payment. Once you’ve paid enough of the principal on your mortgage, you can get the PMI portion of your monthly payment removed. Quintessential Mortgage Group understands the financial challenges of buying a home. PMI can be a barrier many faces when purchasing their home as it can add to your mortgage payment. With our innovative loan programs and competitive rates, we can help you overcome obstacles while staying within your housing budget.
If you don’t have 20% to put down for a conventional mortgage, your mortgage is flagged as an increased risk. Therefore, PMI is added to your monthly mortgage as an additional layer of protection for the lender. However, that is where the protection ends as PMI does not offer borrowers any. If you fall behind on your PMI payments, you could lose your home to foreclosure. This program is available exclusively for 30-year fixed-rate conventional mortgages, and it could result in significant savings over the life of your loan. Some key features include:
We offer programs with competitive rates to assist you in avoiding PMI and taking advantage of a lower down payment. Contact our team today for more information regarding our no PMI program.