You can buy a house with less than 20% down and avoid having to pay monthly PMI. Here is how. There is a little known mortgage insurance product which is an alternative to the traditional monthly mortgage insurance. It is called LPMI which stands for Lender Paid Mortgage Insurance. In exchange for choosing a slightly higher interest rate the lender covers the mortgage insurance for you. The savings can be significant by choosing this option even though you do pay the higher interest rate for the life of your loan where the traditional monthly mortgage insurance can eventually be removed. Consider the following scenario where you are buying a $200,000 house putting 5% down and your credit score is a 740 Traditional Monthly LPMI Interest Rate ...
Comments
0