LPMI vs FHA

Of course it’s important to pay attention to your mortgage interest rate. But it’s even more important to look at the bottom line—your monthly mortgage payment. A Conventional LPMI Loan could save you significantly each month by reducing your monthly costs for mortgage insurance. The amount saved will vary depending on the amount of the loan, LTV (loan-to-value), FICO score, and the amount of MI coverage needed. Here’s an example:

30-Year Fixed-Rate Mortgage: $200,000 Purchase Price

Monthly mortgage payment savings: $1,219.00 - $1,184.64 = $34.36

TOTAL SAVINGS over 30 years: $34.36 X 360 months = $12,369.60

Contact us today to see if an LPMI Loan could save you money!

SAMPLE LOAN SCENARIOS

  • FHA Loan: LTV: 96.5%; MI: 0.85%; loan amount: $193,000 base + 1.75% upfront MI $3,377.50 = $196,377.50 gross; 3.5% down payment: $7,000; FICO: 720.

  • Conventional Loan: LTV: 97%; loan amount: $194,000; 3% down payment: $6,000; 35% coverage; FICO: 720.

And yes, the example above is only 3% down. So if you put more down, the rate will lower… a lot. 5% down would likely lower the rate near 4% and 7% down would be closer to 3.75% as compared to the rates quoted above with the similar fees.

All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend. Please contact Community Lending Group for more information. 

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Josh Thomas NMLS #314438 | UT #5540196 | Corp NMLS #2727