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No PMI Mortgage Loans in Connecticut

Many home buyers are under the erroneous assumption that if they do not provide a down payment for their purchase of at least 20% that they will have to pay for private mortgage insurance for a certain period of time. The main way to avoid paying for PMI is by using lender paid mortgage insurance.

In this instance the lender would pay the mortgage insurance for the borrower. The interest rate that  the borrower will qualify for will  be higher than if they paid the mortgage insurance themselves, but it will produce a smaller overall payment (and to be honest, the rate is not much higher). The borrower must weigh the ramifications of the two different options and see which will be more beneficial in the long term.

If someone doesn’t plan to hold their property for a long period of time and/or if they have a high loan to value ( 90-95%) and don’t think they will be able to pay it down to 80% ltv before they sell, then it may be beneficial to use lender paid mortgage insurance.

Northeast Financial has access as a mortgage broker/correspondent lender to many different wholesale lenders that have lender paid mortgage insurance products.

Rob Shea

 Senior Loan Officer

Northeast Financial

210 South Main St. 1st Flr

Middletown,Ct 06457

860-324-6265

203-413-6240 (fax)

NMLS # 899445

rshea@northeast-mortgage.com

http://www.northeast-mortgage.com/

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