when you choose to have LPMI does that normally mean that you pay an upfront fee and end up with higher interest rate?

Pay on the front, pay on the back.. Either way you pay... Some folks just have a thing about paying mortgage insurance, but the best option is to have it added to your payment, not your interest rate.. By adding it to your payment, if you get to the point where you have 20% equity, you can pay for an appraisal and have it removed.. Whereas if you pick the lender paid option, it doesn't really matter how much equity you have, the interest rate will not change unless you refinance, which means more loan costs.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

If your loan to value is anything above 80%, you have to deal with mortgage insurance somehow. Lender paid mortgage insurance (LPMI) is a great way to reduce the cost of mortgage insurance. Rather than pay a large amount monthly, the cost of the insurance is put into a slightly higher interest rate. Put another way, lets assume that monthly mortgage insurance would cost $125 a month - by raising the interest rate from 3.5% TO 3.75% - You may only increase your monthly payment $25. Net effect, LPMI saves you $100 in this example. Eventually, a standard loan with montly PMI will be able to be removed, but the length of time before most people can have it removed, versus the initial bunch of years worth of savings makes this a great choice for many people. As with all loan options, have a discussion with a licensed mortgage professional (Not a bank application clerk) to determine what is right for you. www.MortgagesUnlimited.biz

LPMI is executed by the lender charging you a higher interest rate. It only makes sense if you can break-even on the rate with the increased costs before you move

Yes LPMI is a higher rate offered to you which grants the lender more security in case of default.

Normally, there is no upfront mortgage insurance with LPMI, though I can not say that for certain of every lender.The price you pay in choosing LPMI, is always a significantly higher interest rate. If the difference in paymentis not that much better than had you chosen the standard borrower paid mortgage insurance...than you loseout on a lower payment once you can drop mortgage insurance from your loan in the future.Our mortgage bank uses upfront mortgage insurance, on a conventional loan, added to your loanonly should you wish to reduce your monthly mortgage payment, or even eliminate having a monthly mortgage payment.It is good to compare a conventional loan, if you can handle at least a 5% down payment, with an FHA loan that allowsfor 3.5% down payment. Sometimes a lower than desirable credit score can mean a much lower rate with FHA.Then, even with the upfront mortgage insurance combined with monthly M I that comes with an FHA loan, the FHAloan can seem like a good choice. We would gladly provide you with an easy to understand comparison betweena LPMI conventional loan and conventional loan with BPMI, and optional reduced M I payment, or no M I payment.

Yes LPMI can be done 2 ways you can pay the premium your self or you can roll it into you loan. Typically the rate you get will be a little higher vs. a mortgage with no MI or monthly paid MI