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Have you ever heard of "Lender Paid Mortgage Insurance?"
Lender Paid Mortgage Insurance (LPMI) is where the lender doesn't require PMI in exchange for a higher interest rate. Now, who would want to pay for a higher interest rate? Well, if you are concerned about not exceeding a particular monthly payment, you may want to consider this option.
I've laid out two options, so you can compare the difference.
1. Loan Example with PMI
- $200,000 purchase price
- 5% down payment ($10,000)
- 30 year fixed rate of 5.875%
- Payment = $1247.42 ($1123.92 of principal & interest + $123.50 of PMI)
2. Loan Example without PMI
- $200,000 purchase price
- 5% down payment ($10,000)
- 30 year fixed rate of 6.375%
- Payment = $1185.35
Example 2 is $62.07 less every month. That is a savings of $744.84 every year!
So, if you are purchasing a home or refinancing your existing mortgage and you don't have that magical 20%, just tell me..."I want to know how much I can save with LPMI."
See more about this and free mortgage advice at genuinemortgagelending.com This is my personal website where you should fine loads of information about myself and how I take care of my clients. I focus my professional attention on helping homeowners that are not aware of certain loan programs and hope it will save them additional money over the life of the loan.
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