The program is what is known as LPMI. This stands for Lender Paid Mortgage Insurance. The lender pays a Single Premium Up-Front charge, and the buyer is exempt from paying any monthly Mortgage Insurance for the life of the loan. The borrower must still go through the formal approval process through a participating PMI company, but they won't have to pay anything toward this program. This is offered by a few lenders for buyers who desire not to pay PMI or the FHA monthly risk premium. It is offered only on conventional loans with a minimum down payment of 5% and buyers with at least scores of 680 or higher. The higher their credit score is, the lower the interest rate that is offered to the buyer. Their is a cost to this in the form of a higher interest rate. The average add-on to the interest rate is .25%, but the actual hit can vary based on the borrower's credit score and the amount of the down payment. Obviously, a person with a 800 credit score and 15% down payment will pay less than a borrower with a 680 score and only 5% down. The best part is that the overall monthly payment goes down substantially for the customer - at least by 5%.
Please call me with any questions or additional details.
Andy Williams
President
Abacus Regional Mortgage
484 695 5972
andrew.williams@abacusmort.com
www.abacusmort.com
At this point, your little house of cards will collapse. This is why it's absurd to pretend to have certain interests in order to appear more attractive to women, and it's just as absurd to ruin your credit score by spending money you don't have. credit reports from all three bureaus
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