Get Adobe Flash player



What’s PMI and is it good?


PMI is Private Mortgage Insurance.

PMI allows you to finance a home with less than a 20% down payment. For an extra monthly cost to you, PMI provides default insurance to the lender.

Thinking of saving more to avoid PMI? Accumulating what can be tens or even hundreds of thousands of dollars for a down payment is a challenge for even the most industrious savers. Delaying a purchase while rates and prices rise may be more costly than PMI in the long run.

PMI allows you to buy what you want now vs. what could end up being far less of a home after you’ve managed to save a larger down payment later. Reach out today and see if you might be ready to buy with a little help from PMI.  Consider, too, checking out other blog posts on this topic (click here, then scroll down to see other posts) and the series of posts entitled Loan Mechanics: The Inner Workings of a Mortgage which covers MI and many other similar topics related to obtaining a mortgage.

What is LPMI?


Post number three in our Loan Mechanics: The Inner Workings of a Mortgage series is all about LPMI.

LPMI is exactly what it sounds like—the lender pays for the mortgage insurance. The fact that someone else is paying for it doesn’t make it free, but depending on your circumstance, it could save you some cash.

A price adjustment for LPMI is typically reflected in a higher interest rate. Still, some borrowers can benefit from lower monthly payments and greater potential tax deductibility. Plus, the overall loan cost can be lower than for loans with conventional mortgage insurance.  If you want to see how it compares to other options, check out this blog post from 2011 where we compared this option, to several other options as well.

We’re here to help you make comparisons, so never hesitate to ask. My team’s contact information is found here.