Even if you do not have 20% to put down on your new home you can avoid paying Private Mortgage Insurance (PMI). Our ZeroPMI home loan allows you to put as little as 3% down and pay no mortgage insurance.
Although the rate on our ZeroPMI loan could be higher than a loan with traditional private mortgage insurance, depending on your credit score and the amount of down payment, your monthly mortgage payment could be hundreds less with the ZeroPMI mortgage.
Generally, if your score is less than perfect (around 760 credit score by today's lending standards) and you are putting less than 10% down on the new home, you will have a lower mortgage payment with the ZeroPMI mortgage. Finding you the right loan program is important to us and we will compare several options to find the best solution for your current and future homeownership goals.
A free quote could save you hundreds per month.
Almost all conventional loans with traditional mortgage insurance have "Risk based adjustments" to both the interest rate and the mortgage insurance rate. If you have a 640 score and put 5% down, you will have both a higher interest rate and higher PMI rate than someone with a 720 score putting 10% down. These extra costs are never disclosed when lenders advertise their rates.
If you read the fine print you will see that they are always basing the advertised rate on 20% down and a 740 score. If that applies to you, great! We have those loans too.
However, if you are like most people, without perfect credit and a bunch of cash to put down, our ZeroPMI mortgage might be the right loan for you. The rate is the same regardless of your score and down payment amount so it doesn't matter whether your score is 660 or 760 or whether you are putting 3% down or 15% down. ZeroPMI with no risked based adjustments could be your better loan option. Click below to see if it makes sense for you
The Fine Print:The loan comparison above is based on a $175,000 loan , putting 3% down with a 680 score. ZeroPMI rate of 4.75% (4.809 APR) and risk adjusted 4.50% (5.493 APR) were used in the calculations. Rates used are for comparison purposes and are not guaranteed to be the same when you apply. Please contact us for the current rates and a free side by side loan evaluation. The ZeroPMI program is for qualified borrowers and certain restrictions apply. If you are putting less than 5% down you must have at least a 660 score.