Mortgage Loans With No Mortgage Insurance Explained

Mortgage loans with no mortgage insurance are a great option for homebuyers who want to save on their monthly mortgage payments.

These types of loans are often referred to as "no MI" loans.

The main advantage of no MI loans is that they don't require the borrower to pay private mortgage insurance, which can be a significant cost savings.

Private mortgage insurance, or PMI, is typically required for borrowers who put down less than 20% of the home's purchase price.

Here's an interesting read: Private Mortgage Insurance Cancellation

Avoiding PMI can be a game-changer for homeowners. You can avoid paying PMI without making a large down payment.

There are a few ways to do this, and it's worth exploring your options. Sometimes lenders and banks create special programs that allow a low down payment with no PMI.

One such program is offered by American Loans in Utah, which provides conventional loans without PMI. With this program, you can get a mortgage loan without PMI on loans up to 95% of the value of your home.

Here are some details about American Loans' program:

Keep in mind that you'll need a minimum credit score of 620 to qualify for this program, and a score of 740 or higher to get a loan up to $1,000,000 with no PMI.

Lenders will sometimes pay for mortgage insurance themselves, but charge a higher interest rate on the mortgage to cover their expense.

This is known as Lender-Paid Mortgage Insurance (LPMI) and it can make your mortgage payment cheaper each month.

In some cases, LPMI can be cheaper than paying a monthly insurance premium, but it depends on the loan terms.

You can also consider Lender Paid Mortgage Insurance, which eliminates your monthly mortgage insurance, but comes with a higher mortgage rate.

To determine if this option is best for you, compare it with other options to see if it makes the most sense.

Some people may be able to deduct their mortgage insurance premiums, but others may not, so it's worth considering Lender Paid Mortgage Insurance if you can't deduct your premiums.

You may still be able to deduct your mortgage interest each year.

Related reading: Are Adjustable Rate Mortgages Bad

You can avoid paying private mortgage insurance (PMI) without putting down 20% of the home's value. There are special programs that allow low down payments with no PMI.

Some lenders and banks create special programs for first-time home buyers, low-income home buyers, and certain professionals like teachers or doctors. These programs can offer low down payments with no PMI.

American Loans offers no PMI home loans in Utah with very low rates. They can refinance you and eliminate PMI costs if you're currently paying it. Their conventional loan without PMI program allows loans up to 95% of the home's value with no mortgage insurance.

You can also use a combo loan to eliminate the need for mortgage insurance. This involves taking out a first mortgage at 80% of the sales price and a second mortgage to cover the remaining 10-15%. The second mortgage is typically a home equity line of credit.

You might enjoy: Low down Payment Conventional Mortgage Loan

Not all lenders require PMI. Some private lenders, like Navy Federal Credit Union, offer mortgages with no PMI requirement even with low down payments. You can also use a conventional mortgage and borrow up to 85% with no PMI.

Here are some details about loans without PMI:

Some loan options don't require PMI, but these programs are usually created by lenders and banks on a case-by-case basis. Lenders often offer special programs for first-time home buyers, low-income home buyers, and certain professionals like teachers or doctors. These programs can provide a low down payment with no PMI.

Occasionally, lenders and banks partner with government agencies to offer mortgage loans with no PMI. These government-backed loans often have more lenient credit score requirements and lower down payment options.

Some lenders offer 3% down payment options without PMI, but these loans typically require mortgage insurance. Lenders and banks sometimes create special programs that allow a low down payment with no PMI.

Curious to learn more? Check out: Is Mortgage Insurance Required for Va Loans

You've found the home of your dreams or you're still exploring options. Navy Federal has multiple mortgage options that don't require PMI.

Whether you're a first-time homebuyer or a seasoned pro, it's essential to find a mortgage that fits your needs. Navy Federal's options can help you achieve your goal of homeownership without the added burden of PMI.

Ready to Get Started? You can find the one that works best for you by exploring Navy Federal's mortgage options.

If this caught your attention, see: Navy Federal Mortgage Loans