Lender Paid Mortgage Insurance = No Monthly Mortgage Insurance Did you know you can get a home loan without putting 20% down and eliminate the need for paying that annoying monthly mortgage insurance? Well, you can, and you can do it with as little as 5% down payment. with Lender Paid Mortgage insurance (LPMI) on a conventional loan program. Its no free lunch and does come with a price, but can be a much cheaper option than paying the monthly mortgage insurance for years and years (..and years and years...you get the point!) The way its paid for is either absorbing it on the back end of your interest rate which results in getting a slightly higher than par interest rate OR by paying a one time up front fee when you close. This can only be done with a Conventional loan program (not FHA, VA, or USDA). Factoring it into the interest rate can result in a slighter higher interest rate BUT you could end up with a lower payment overall because you have no mortgage insurance. What would you prefer a lower rate or lower payment? This is good for people that may not want to keep the house for a long time (
Posted on: Fri, 25 Jul 2014 22:45:01 +0000
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