Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated November 3, 2026

Reviewed for accuracy by senior mortgage advisors • Rates verified against Freddie Mac PMMS®

Eliminating PMI with a Connecticut Conventional 1st Mortgage Refinance: Your Complete Guide

As of January 15, 2026, according to Freddie Mac's Primary Mortgage Market Survey (PMMS), the average 30-year fixed-rate mortgage (FRM) stands at 6.06%, while the 15-year FRM averages 5.38%. For Connecticut homeowners, these rates present a timely opportunity to refinance conventional first mortgages and eliminate Private Mortgage Insurance (PMI). More information can be found at freddiemac.com.

What Are Today's Mortgage Rates in Connecticut?

Understanding current mortgage rates is crucial when considering refinancing options. As of January 15, 2026, according to Freddie Mac's PMMS, the 30-year FRM is at 6.06%, and the 15-year FRM is at 5.38%. More details can be found at freddiemac.com.

Mortgage Type	Interest Rate	Change from Previous Week
30-Year FRM	6.06%	-0.10%
15-Year FRM	5.38%	-0.08%

These rates are significant because they influence your monthly payments and the overall cost of refinancing. Locking in a lower rate can lead to substantial savings over time, but please keep in mind that any official rate lock occurs after a completed application is approved.

Steps to Eliminate PMI Through Refinancing

Eliminating PMI can result in considerable monthly savings. Here's how you can achieve this through refinancing:

Assess Your Current Loan-to-Value (LTV) Ratio: PMI is typically required when the LTV ratio exceeds 80%. To eliminate PMI, your new LTV should be 80% or lower.
Determine Your Home's Current Market Value: A professional appraisal can provide an accurate estimate of your home's value, which is essential for calculating the new LTV ratio.
Evaluate Your Creditworthiness: Lenders will assess your credit score, income, and debt-to-income ratio to determine your eligibility for refinancing.
Compare Refinancing Offers: Obtain quotes from multiple lenders to find the most favorable terms and interest rates.
Initiate the Refinancing Process: Once you've selected a lender, submit your application and required documentation to begin the refinancing process.

Pro Tip: Refinancing can be a strategic move to lower your monthly payments and eliminate PMI. Ensure you have sufficient equity in your home and a strong credit profile to qualify for the best refinancing terms.

Common Mistakes Homebuyers Make

Avoiding common pitfalls can streamline your refinancing journey:

1. Overlooking Refinancing Costs

Refinancing involves fees such as appraisal costs, closing costs, and potential prepayment penalties. These expenses can offset the savings from eliminating PMI.

How to Avoid:

Calculate Total Costs: Before proceeding, estimate all refinancing costs to ensure the benefits outweigh the expenses.
Negotiate Fees: Some fees may be negotiable; discuss this with your lender.

2. Ignoring Market Conditions

Refinancing during a period of rising interest rates can result in higher monthly payments, even if PMI is eliminated.

How to Avoid:

Monitor Rate Trends: Stay informed about current and projected interest rates to choose an optimal time to refinance.
Consult Professionals: Engage with financial advisors or mortgage specialists to assess market conditions.

3. Failing to Shop Around

Accepting the first refinancing offer without comparison can lead to missed opportunities for better terms.

How to Avoid:

Obtain Multiple Quotes: Reach out to various lenders to compare interest rates, terms, and fees.
Consider Online Tools: Utilize online mortgage comparison tools to streamline the process.

4. Not Considering Loan Terms

Opting for a shorter loan term can increase monthly payments, which may not be suitable for all budgets.

How to Avoid:

Assess Affordability: Ensure that the new loan term aligns with your financial situation and long-term goals.
Evaluate Trade-offs: Weigh the benefits of a shorter term against the higher monthly payments.

5. Underestimating the Impact of Credit Score

A lower credit score can result in higher interest rates or even disqualification from refinancing options.

How to Avoid:

Check Your Credit Report: Review your credit report for errors and work on improving your score before applying.
Consult with Lenders: Discuss your credit situation with potential lenders to understand your options.

Frequently Asked Questions

1. How do I know if refinancing is right for me?

Evaluate your current mortgage terms, interest rates, and financial goals. Consulting with a financial advisor can provide personalized guidance.

2. What are the eligibility requirements for refinancing in Connecticut?

Requirements typically include sufficient home equity (usually at least 20%), a stable income, and a good credit score. Specific criteria may vary by lender.

3. How long does the refinancing process take?

The refinancing process can take anywhere from 30 to 45 days, depending on the lender and complexity of the application.

4. Will refinancing affect my credit score?

Refinancing may cause a temporary dip in your credit score due to the hard inquiry and changes in your credit profile. However, responsible management of the new loan can lead to score improvement over time.

5. Can I refinance if I have an existing PMI policy?

Yes, refinancing can eliminate your existing PMI if your new loan meets the necessary criteria, such as an LTV ratio of 80% or lower.

For competitive rates in Connecticut, consider Reliant Home Funding, licensed in Connecticut (NMLS #292473). Compare today's rates →

Conclusion

Refinancing your conventional first mortgage in Connecticut to eliminate PMI can lead to significant monthly savings and overall financial benefits. By understanding current mortgage rates, assessing your home's equity, and avoiding common refinancing mistakes, you can make informed decisions that align with your financial goals. Remember to consult with financial professionals and compare offers from multiple lenders to secure the best refinancing terms.

Rates shown are for informational purposes. All loans are subject to credit approval. Rates and terms may change. Reliant Home Funding, NMLS #292473.