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"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:VMqdnR9ex6pHqfvZnZ2dneKdnZydnZ2d@ez2.net...
> LPMI? What is LPMI? I know what PMI is, but the L is throwing me.
>
> And, yes the direct lender programs can be, and often are, different than
> the broker programs. I came from a broker, and I have never noticed a
> Minimum Payment being fully amortized. I will accept the notion that the neg
> am might be waived in the first month or so, but there's no way the
> minimum payment can ever be fully amortized. Well, there is one way
> (theoretically), the index could be low enough that the min payment and
> the fully amortized payment might be very close. In my expereince, if this
> were to happen, the bank would not allow the minimum payment --
> effectively reducing the pick-a-pay option from 4 choices to 3. This
> scenario is rare, but it can happen.
>
LPMI is lender paid mortgage insurance. There is no mortgage insurance
itemized in the payment, and an MI company does not underwrite the loan.
Rather, it's reflected in the interest rate, giving it tax consideration.
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Re: Secrets of the Option ARM Loan (Newbie Guide)
