PMI – Not All the Same - Envoy passes along our discount to our buyers. Private Mortgage Insurance or PMI is insurance to protect the lender in the event that a homeowner defaults and the lender is forced to foreclose. PMI comes in three flavors and, depending on loan type, can be paid upfront, monthly and/or financed into the home buyer's interest rate or loan amount. It is required on mortgages when a borrower puts less than 20% down. Upfront PMI is insurance that is paid or financed along with the loan amount at the time of closing, depending on the loan program and its requirements. In some cases, the upfront PMI is also referred to as a Guarantee or Funding Fee, as in the case of loans guaranteed by the USDA Rural Development or VA. In the case of an FHA loan, mortgage insurance is called the Mortgage Insurance Premium or MIP. In lieu of being paid on a monthly basis for loans sold to Fannie Mae and Freddie Mac (conventional loans), a borrower can choose to finance their PMI when allowed by the lender. In addition to upfront MIP, monthly MIP is also required for FHA loans. However, for both USDA Rural Development and VA loans, no monthly mortgage insurance is required. With conventional loans where not financed or paid upfront, PMI can be paid on a monthly basis either separately or in exchange for Lender Paid Mortgage Insurance (LPMI). Where offered, LPMI results in the borrower paying a slightly higher interest rate. This is often a much better options than paying monthly. To see which options work best for you, give us a call today. We will prepare an analysis detailing all of your options and the differences in payments for each program. If you would like to learn more about ways to eliminate MI from your existing mortgage please visit my website Does your employer provide you Real Estate Benefits Package? If not, click here for more information about getting set up or becoming a provider.

Mortgage Interest Rates for Fixed and Variable Rate Mortgages*

Rates as of Friday, 28th January, 2011:

Term Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 Arm Reset Term 30-Yr. Fixed 360 4.750% 4.879% $5.22 5.500% 5.590% $5.68 - 15-Yr. Fixed 180 4.125% 4.346% $7.46 5.1250% 5.277% $7.97 - 7-Yr. Fixed ARM 360 3.625% 3.746% $4.56 4.500% 4.585% $5.07 7 5-Yr. Fixed ARM 360 3.250% 3.368% $4.35 4.125% 4.208% $4.85 5 5-Yr. Int. Only 360 4.750% 4.879% $3.96 4.250% 4.334% $3.54 - 30-Yr. FHA 360 4.625% 4.753% $5.14 % 0.000% $0.00 - 30-Yr. VA 360 4.750% 4.879% $5.22 4.875% 4.962% $5.29 - USDA 100% Financing 360 5.125% 5.257% $5.44 9999% 9999.000% $nan - 10 Year ARM 360 4.500% 4.627% $5.07 5.000% 5.088% $5.37 10 203K Remodel FHA 360 5.250% 5.383% $5.52 % 0.000% $0.00 -

*Rates are subject to change due to market fluctuations and borrower's eligibility.

This is not a commitment to lend. Credit and collateral subject to approval, other restrictions may apply. Programs, rates, terms and conditions are subject to change without notice. Rate base upon 760 FICO score. Envoy Mortgage, Ltd NMLS #6666, Richard Woodward NMLS # 217454, Licensed held by the State of Texas. Equal Housing Lender.