Note: I should have titled this post: “LPMI, PMI and Piggy Back Mortgages…Oh My”. I just realized my error thanks to Bill’s comment. My bad…my apologies! And there’s no way for me to
80/20 in the title.
LPMI (Lender Paid Mortgage Insurance) is one of my favorite mortgage products to use for clients with less than [photopress:wiz.jpg,thumb,alignright]20% down. Here are some of the benefits of an LPMI mortgage:
Loan amounts up to the conforming loan limit (currently $417,000 for a single family dwelling).
Mortgage interest tax deductible for adjusted gross incomes over $100k (unlike PMI).
Convenience of one mortgage payment vs. two mortgage payments on a property.
Often provides lower payments a lower total mortgage payment than the “piggy back