LPMI allows a borrower to pay a percentage up front when you get your loan and you will not be charged the traditional monthly PMI.
LPMI is Lender Paid Mortgage Insurance and is available only on conventional loans.. The idea of having lender paid mortgage insurance is relatively simple: pay a percentage up front when you get your loan and you will not be charged the traditional monthly PMI.
LPMI is also available on refinance transaction up to the loan to value (LTV) of 95%. This is based off your loan amount compared to your estimate homes value. The monthly savings are dramatic and may be the difference of you qualifying for the home you want.
Just like tradition PMI, LPMI allows a borrower to put as little as 5% down payment on a new purchase and not the traditional 20% down payment.
When it comes to the benefits of LPMI, most people first think of the lower monthly payment but that isn’t the only benefit of LPMI — another benefit to LPMI is that you can actually qualify for a larger higher purchase price since your monthly payment is less because you are basically paying a percentage, which is determined by the Mortgage Insurance company, so you don’t have the traditional monthly Private Mortgage Insurance (PMI) that is paid each month on your mortgage payment. When you do the math, it is possible that getting LPMI on your loan could save you a chunk of money each month on your monthly mortgage payment.
Contact us today at (513) 229-9660 to get started or start an application today.