Borrowers tend to struggle with loan programs that require private mortgage insurance. American Loans helps these borrowers by offering loans that do not include any mortgage insurance at all.
[SANDY, 5/2/2018] – Most lenders require private mortgage insurance (PMI) in case a borrower default on payment or fail to meet the contractual obligations of the mortgage. The good news with American Loans, a borrower can avail of loan programs without this.
Breaking Down Mortgage Insurance
American Loans offers programs without mortgage insurance that requires a borrower to pay to protect the bank. This refers to not having 20 percent of a down payment or equity.
According to Investopedia, mortgage insurance possibly comes with a usual pay-as-you-go premium payment. The monthly cost of this stays with a borrower’s payment for years.
“To make it clear: you will pay several hundred additional dollars per month in insurance which gives you no benefits. Your PMI only protects the lender because you didn’t put down 20 percent equity,” American Loans explains.
People with Federal Housing Administration (FHA) loans also have to pay PMI. With the new guidelines, a borrower may have to pay for the PMI for the life of a loan.
Low Rates Without PMI
Working with the right mortgage company makes all the difference in the world, according to American Loans. Any borrower can find the company’s programs with very low rates without mortgage insurance.
The company’s trained and experienced loan officers will assist a borrower in choosing a rate and how much a borrower can have. For those currently paying PMI with their premium, American Loans can refinance and get rid of that cost.
The benefits of their loan programs with no PMI include:
- No mortgage insurance (save up to $360 a month PMI) on loans up to 95 percent of the property’s value
- For refinancing and getting rid of current Mortgage Insurance
- For purchase with only 5 percent down payment
- Rates as low as 3.750 percent
- Zero closing costs option available
- Up to $417,000 minimum score 620
- Up to $1,000,000 with no PMI with scores of 740+
About American Loans
Having been in the business for over 20 years, American Loans has several kinds of loan programs that offer not only the best mortgage rates, but the most comprehensive communication. The company’s loan officers have experience. They put a customer’s best interests in mind at all times.
American Loans can help any borrower find a rate and a program that best applies to the situation. To find out more, visit https://www.americanloans.com today.