Answers (5)
Best Answer
- Elaine Uhlman, "Elaine Uhlman"
- Contributions:33
I have numerous clients that have taken the LPMI because they find that the monthly mortgage payment savings is substantial.
I recommend you check out the PAR interest rate that is published for today and figure that LPMI should be 1/4% to 3/8% higher.
- Clay Branch, "Georgia Loans"
- Contributions:8819
- OelrichTeam
- Contributions:78
A couple of thoughts that I would add to this dialogue:
LPMI was originally crafted to allow for the tax deduction of the MI...back when MI was not tax-deductible. This was a good idea originally, but there is a down side to LPMI, which is that the lender's higher interest rate on the loan is permanent...it isn't reduced when the Loan to Value is below 80%, even though the lender is no longer paying for MI on the loan.
With traditional borrower-paid MI on a conventional loan, the MI may now be tax deductible, depending on the income of the borrower, and the MI will go away once the Loan to Value drops below 80%.
My advice would be to speak with a local mortgage professional to review your specific circumstances to determine which option would be more appropriate.
- Elaine Uhlman, "Elaine Uhlman"
- Contributions:33
90% purchase LPMI 5.125% APR 5.2934% 30 yr fixed 1% fee + closing costs for a residence in Auburn WA
- Dave Skow, "daveskow"
- Contributions:1373
What are rates on Convent w/a LPMI loan, we have excel credit we are putting 10% on 234000 30yr?
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