Mortgage Refinancing: Avoid Paying Private Mortgage Insurance

Louie Latour

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If you were required to purchase Private Mortgage Insurance (PMI) when buying your home, your financial situation may have changed enough that mortgage refinancing will allow you to stop paying this expense. Mortgage Refinancing has the advantage of giving you lower monthly payments and better terms on the new loan. Here are several tips to help you decide if mortgage refinancing is right for you.

Mortgage lenders require borrowers to purchase Private Mortgage Insurance to protect themselves from certain losses due to foreclosure. PMI does absolutely nothing for the homeowner but drive up your monthly payments, sometimes hundreds of dollars per month. When you finance more than 80% of the value of your home, most lenders require Private Mortgage Insurance. If the value of your home has gone up, you could drop your PMI early with mortgage refinancing. A new appraisal prior to refinancing the loan will tell you exactly how much equity you’ve built in your home and is well worth the expense if it allows you to stop paying PMI.

Even if you do not have sufficient equity to avoid PMI with a traditional mortgage lender you can still avoid it by using a piggyback loan when mortgage refinancing. Piggyback loans are also called 80/20 loans and are actually two loans, often from two different lenders. The first loan is for 80% of the total loan value and the remaining 20% is the piggyback loan making up the difference. Piggyback loans come with slightly higher interest rates because the second lender assumes more risk; however, this expense will cost you much less than if you were paying Private Mortgage Insurance.

You can learn more about your mortgage refinancing options, including common mistakes to avoid by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of “Mortgage Refinancing - What You Need to Know, " which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit .

Claim your free mortgage refinance information guide today at:

Mortgage Refinance Information


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