|
"Rainmaker" <brigadoon_8at@junodot.com> wrote in message
news:126f26begopjt29@corp.supernews.com...
>
> "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.
>
Got it. I even knew that. I have done loans where the borrower took a higher
rate to avoid MI. This strategy allows the deduction of MI from one's taxes
because the MI looks just like interest. Which is what you said ...
|
|
Re: Secrets of the Option ARM Loan (Newbie Guide)
