Home Buying in Los Angeles>Question Details

So Cal Buyer, Home Buyer in Los Angeles, CA

What are the risks of choosing a LPMI loan? I am considering a loan from US Bank. Any recommendations?

Asked by So Cal Buyer, Los Angeles, CA Tue Apr 17, 2012

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I have a personal friends, mortgage executive working at US bank and i can provide you his contact information, he can go over all programs with you in details.

Please feel free to call me direct!

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4 votes Thank Flag Link Tue Apr 17, 2012
LPMI might be a good way to go, but you have to compare it against the other options and relate it to your specific scenario. The two things I don't like about LPMI are that the rate is typically higher, and secondly, once you've built equity in the home, you cannot remove the mortgage insurance component of your payment.

If your goal is to not have a monthly mortgage insurance payment, there can be some better ways to do it. If you're committed to working with your existing loan professional, ask him/her about those alternatives. If you are open to discussing with someone else, give me a call or send me an e-mail any time.

Rob Spinosa
0 votes Thank Flag Link Wed Apr 18, 2012
Union Bank has some great products, always investigate...
0 votes Thank Flag Link Wed Apr 18, 2012
The good part about lender paid mortgage insurance is that since they increase your rate to cover for the mortgage insurance, you have the interest tax deduction however the downside is that if values increase or you pay down your principal and you have enough equity that mortgage insurance is no longer a requirement, you would not be able to request for a removal of mortgage insurance such as you can when you have separate MI. Unless US Bank has a section in their note that allows for some modification of the rate once MI is no longer necessary, that is the downfall of LPMI. Hope that helps.
0 votes Thank Flag Link Wed Apr 18, 2012
Hi Buyer So Cal,

Just closed a transaction with USbank. They were late getting to loan docs, past contract close date. My buyer had to pay the interest on the sellers loan, 46.75 a day, everyday past the closing.(Breach of contract) It adds up, and was a very stressful situation with US bank on funding loan... Would never recommend them again.

Any Questions,

Madelaine Kolisnyk, Realtor
Power Brokers International, Beverly Hills
Madelaine K Properties!
0 votes Thank Flag Link Wed Apr 18, 2012
Hi So Cal Buyer,

Please feel free to contact me below at your earliest convenience. I have a contact at US Bank that can explain and help you with this.

Andrew Demirchyan
Keller Williams Realty
7920 W Sunset Blvd, #100
Los Angeles CA 90046
P: (818) 919-2018
F: (888) 214-7552
DRE License #01816257
0 votes Thank Flag Link Tue Apr 17, 2012
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