Dallas Mortgage Refinance: How NO PMI loans can save you money!

Dallas Mortgage Refinance: How NO PMI loans can save you money!

Seeing is believing.   And when it comes to getting “the best mortgage rate around” –what someone really means is “I want the lowest mortgage payment. Which bank is going to give me the lowest payment.”

In the mortgage world people say “rate” but what they really mean is “payment.”   Consider PMI mortgages. These loans have PMI (private mortgage insurance.)  And while they seem to have sexy rates…they have PMI which is a way of giving a borrower the idea that they have a low rate when really they don’t.   Just look at the bottom line when deciding on any mortgage…let the numbers do the talking.

Because if you got an FHA mortgage at 4.00%, and you pay $100 in PMI plus the 3% FHA funding fee….do you really have a 4% rate.   No.  You have close to a 5.5% when you calculate the PMI and when you consider the FHA funding fee it’s really higher.

PMI loans are fake rates.   So make things simple and go with a NO PMI loan or an 80/15 or 80/10…

For example, I’m helping a guy right now in Dallas buy a $330,000 home and he’s only putting 5% down.

Since he wants to escrow-or he wants the bank to pay his taxes and insurance-his total payment with 5% down is $2737.00  That’s everything….mortgage, insurance, taxes (almost $800!).  

This loan has PMI because it’s a single loan up to 95%.

However, if he does a NO PMI loan or an 80/15 he can avoid the PMI and his payment goes down by $76.  That’s correct, a no-pmi loan, 80/15 loan has a lower payment than a single loan with PMI.  $76/month adds up!

So keep this in mind when you’re looking to buy or refinance.  

 Everybody focuses on the mortgage rate, but consider looking at the preverbal “bottom line” and looking at a loan without PMI. Because, these loans-often have the lower payment. 

Not to mention you can pay your own taxes and insurance with an 80/15 or 80/10.

 Naturally, you have to have excellent credit and assets to get approved for a NO PMI loan but it’s definitely worth it.

Have questions about NO PMI loans up to 95%…call us!   On second thought, take a look at our closing costs PDF and then give us a call.  Notice we don’t charge points!