If you think you must carry mortgage insurance for your loan, another option is lender-paid mortgage insurance.
LPMI eliminates the monthly mortgage-insurance portion from your monthly payment. Let’s face it, though, it’s still getting paid. While this scenario is basically just a restructuring of how mortgage insurance gets paid, it can save you money every month and possibly much more over a longer period.
A conversation with your loan officer can help guide you through which is best for your scenario.
Lender-paid mortgage insurance and varying mortgage-insurance rates apply to conventional loans. The mortgage-insurance rates for government loans such as FHA and USDA are predetermined.
Mortgage insurance is typically required for conventional loans when a person is financing more than 80% of the value of real estate, or in other words, putting less than a 20% down payment. If you have any questions about this or are currently paying mortgage insurance and want to get rid of it, call us at 813-707-6200.