mortgage insurance

[greenskeeper]

One bank will give 4.375 w/ LPMI

another will give 4.5 w/ BPMI

both 30 year notes

Doesn't make sense because should the LPMI have a higher interest rate than the BPMI? The difference is roughly $120/month payment.

[Petunia 100]

I didn't even know what "LPMI" and "BPMI" meant, so had to look them up. I found this nifty comparison:

https://www.wellsfargo.com/mortgage/articles/lpmi_bpmi

According to Wells Fargo, yes, the cost of LPMI is included in the interest rate, so you would expect it to be higher. I think this is simply a case of rates varying from lender to lender.

[greenskeeper]

probably right, would be interesting to know what % the MI is worth for rate increase vs the cost of it.

[Gina23]

Be careful! I had the same situation when I refinanced recently... I ended up going with the PMI that goes away after having 20% value in the home. The other option presented held the PMI no matter what and would force you to refinance even after having 20% equity. Being as though I had almost 15% equity in the home already, it was a no brainer for me.