Local Lenders Can Help You Secure a No PMI Mortgage

~Sponsored by Montgomery Bank

When purchasing or refinancing a home, some home buyers may be required to purchase PMI (Private Mortgage Insurance.)

PMI is an insurance policy that is usually paid by the home owner, and is meant to protect your lender in the event that you are unable to make payment on your home in the future. For conventional loans, PMI is required when a home's equity percentage is less than 20 percent.

Some local banking institutions, such as Montgomery Bank, offer a variety of low down payment mortgage loans that do not require the traditional Private Mortgage Insurance. For example, a first-time home buyer can take out a 30-year fixed-rate mortgage that only requires 3 percent down, and no PMI is charged. Also some local banks participate in a national grant program where some if not all of the down payment could be available. Other options through local banks are: a 15-year fixed-rate mortgage that can go as high as 95 percent loan to value with no PMI, and five- and seven-year Adjustable Rate Mortgages (ARM) for 30 years that can go as high as 90 percent loan to value with no PMI.

If you are currently paying PMI, it may be of benefit to you to research refinance options with local banking institutions like Montgomery Bank that also provide the added advantage of options serviced in-house.

When looking to purchase a new home, it is important to do your homework to ensure you are securing a home loan that makes the most sense financially and is the best loan available for you and your family.