Whether you’re purchasing a home or have an existing mortgage, STOP PAYING PMI! Everybody hates it, no one wants to pay it, and it’s expensive. So why are you paying it if you don’t have to? Unbeknownst to most loan officers and even more consumers, there’s a nice trick to avoiding traditional PMI on conventional loans. It’s called LPMI. This stands for Lender Paid Mortgage Insurance. Full details for LPMI loans can be viewed here: LPMI Loan Options
On LPMI loans instead of the home owner paying costly mortgage insurance, the lender pays it on your behalf. The cost to you is a slight hike in the interest rate. In a sense you’re buying out the PMI with that slight rate increase. However it always results in a much lower payment than the alternative of paying the traditional PMI monthly.
LPMI loans is the best low down payment loan option available when compared to all other conventional and FHA loans. Here’s an example of how loans with PMI compare to an LPMI loan. Each one is based on a $300,000 purchase price and a 5% down payment. To view the full details of these loan comparisons click here: LPMI vs Other Low Down Payment Loans