By accepting a rate that is approximately .375% higher than the going rate, you can get rid of monthly Mi for a monthly increase that is a fraction of what the monthly premium is.
Example: let's say you are borrowing $300,000 on a home that's worth $330,000. You are paying;
30 Year Fixed (With mortgage Insurance) 4%
$1,575.47 principal and interest
$195.25 Mortgage Insurance
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$1770.72 Payment.
30 Year Fixed (With LPMI, one upfront payment paid by Lender) 4.375%
$1,647.64 Total Payment
So as you can see here LPMI is a much better deal than monthly mortgage insurance. Remember, the lender will pay this FOR YOU if you agree to take a higher rate. Rates for this can be quoted from the Radian website.
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