Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If my payments are lower with Lender Paid Mortgage Insurance and I plan to make extra payments and possibly pay off early if I get inheritance money would it be better than FHA mortgage insurance?
Aren't the payments the same with both for the life of the loan and if LPMI is less shouldn't I go with that?
If my payments are lower with Lender Paid Mortgage Insurance and I plan to make extra payments and possibly pay off early if I get inheritance money would it be better than FHA mortgage insurance?
Aren't the payments the same with both for the life of the loan and if LPMI is less shouldn't I go with that?
LPMI is Lender-paid. You pay for it via a higher interest rate than you would get if you paid it yourself - or didn't need it via 20% down payment, or 80/10/10. The fixed interest rate does not go down when you reach any equity thresholds.
Again, what is the home price, and your down payment amount?
LPMI is Lender-paid. You pay for it via a higher interest rate than you would get if you paid it yourself - or didn't need it via 20% down payment, or 80/10/10. The fixed interest rate does not go down when you reach any equity thresholds.
Again, what is the home price, and your down payment amount?
I don't want to list specifics, but say with LPMI 360 payments of $490 vs. FHA [360] with mortgage insurance and $515 per month. Wouldn't the LPMU one make more sense? I think they only require 5% down vs. 3.5% for FHA and my credit score is over 800.
I don't want to list specifics, but say with LPMI 360 payments of $490 vs. FHA [360] with mortgage insurance and $515 per month. Wouldn't the LPMI one make more sense? I think they only require 5% down vs. 3.5% for FHA and my credit score is over 800.
(What kind of genius would I have to be to be albe to locate you, using a purchase price and down payment hypothetical?)
People often go with FHA for reasons other than the low down payment, such as greater leeway with income and credit history. The reason Pfhtex is asking you for the details is because when it comes down to it, to answer your question, you would literally need to run the numbers on both the Lender Paid Mortgage Insurance (LPMI) and FHA scenario and make a decision that way. I also suggest looking at Borrower Paid Mortgage Insurance and run the numbers. I find that in many cases borrower paid MI makes more sense than LPMI.
People often go with FHA for reasons other than the low down payment, such as greater leeway with income and credit history. The reason Pfhtex is asking you for the details is because when it comes down to it, to answer your question, you would literally need to run the numbers on both the Lender Paid Mortgage Insurance (LPMI) and FHA scenario and make a decision that way. I also suggest looking at Borrower Paid Mortgage Insurance and run the numbers. I find that in many cases borrower paid MI makes more sense than LPMI.
But once the numbers are run if the LPMI is a lower monthly payment wouldn't it be the better option?
But once the numbers are run if the LPMI is a lower monthly payment wouldn't it be the better option?
The answer to that depends on the original term of your mortgage and how long you will be keeping your mortgage. You can drop MI in FHA loans for some terms, for some you can't. LPMI will probably be the best option in your example. Still, I would look into borrower paid MI before making a decision. LPMI is forever.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
