If you have only 5% down and wants the lowest payment possible, our lender paid PMI (Private Mortgage Insurance) is the best payment option for borrowers with a minimum of 720 or higher credit score.
Look at the comparison below.
$200,000 purchase price with 5% down with a loan amount of $190,000.
Option A: Paying Monthly PMI
Rate: 4.625% with .875% point for a 30 YR Fixed.
Principal + Interest with PMI: $1,127.29
Option B: Lender Paid PMI
Rate: 5.375% with .875% point for a 30 YR Fixed.
Principal + Interest: $1,063.95
That is a $63.34/ month or $760.08/year savings, perfect for the budget minded home buyer!
Please let me know when I can help your next home buyer achieve the best financing terms possible.
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