Question by Jamboree: Refinancing mortgage question?
Does anyone know of a bank that has a great rate for refinancing approx. 4.6% or lower for a 15yr or 30 yr that doesn’t require PMI if less than 20% equity is in home.
Well I have a 6% 30 yr w/ no PMI w/ a downpayment of 5% at the time of purchase, so no PMI does exist, you have to shop around.
Answer by sassy2
Know better? Leave your own answer in the comments!
No. The key to getting no PMI is having 20% down payment or 20% equity. That money can not be borrowed.
In theory you could borrow money from a private lender in an amount sufficient to lower your current loan to 80% of value. Now you would have 20% equity but you would have to pay the 2nd lender back..
I did what we called “consumer loans” a few years ago, and there was no MI for anyone, nor did we escrow. The loans were not Fannies or Freddies, so we had the leeway to do that.
We don’t do those loans anymore, though. All of our loans are now Fannies, Freddies, FHA or VA. I don’t know where you’ll find that deal anywhere.