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LPMI (Lender) vs PMI (Private) Coverage?
What are the main differences between them?
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Price, LPMI can lower your payment as shown below
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Your file is underwritten once with LPMI, twice with PMI
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$225,000 Home Purchase (10% Down Example)
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90% LPMI Loan
90% LTV / 10% Dn
1st Mortgage
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90% PMI Loan
90% LTV / 10% Dn
1st Mortgage
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Mortgage Loan Amount
Interest Rate
Amortization Term
Monthly P&I Payment
"Monthly Paid" PMI
Which payment's lower?
Payment - / + |
$202,500
5.50% Fixed
360 Months
$1,135.58
None -0-
________
$1,135.58
-$42.69 (lower payment) vs. PMI
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$202,500
5.000% Fixed
360 Months
$1,073.64
$104.63
________
$1,178.27
+$42.69 (higher payment) vs. LPMI |
Rates, terms and product are subject to change daily. Since LPMI (Lender paid mortgage insurance) is paid by an increase in interest rate for the life of the loan, it may be deductible compared to PMI which is insurance that protects the lenders interest should you default. Check with your tax advisor to see how either may benefit you. Please call for a current quote when you are ready. Rate is generally LTV and credit score driven. Total monthly debt ratio may not exceed lender guidelines. Other PMI and LPMI options are also available subject to the LTV/credit score requested this LPMI example assumes 700+ credit score and primary purchase. The LPMI options may be more restrictive on the AUS decisioning and/or lender guidelines. Though the PMI example may carry a higher payment it is possible that you may request it to be released when the LTV falls below certain levels based on value and specific lender guidelines for release. No loan approval is promised or implied in this example.
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