quick update on LPMI options versus FHA financing

1. 95% LTV WITH LPMI VERSUS FHA HIGH FICO SCORE BORROWERS WITH 5% DOWN. DTI IS LIMITED TO 41% DTI. SELLER CONCESSIONS LIMITED TO 3%

2. $200,000 SALES PRICE: FHA AT 4.625% WITH 3.5% DOWN CONV AT 4.875% WITH 5% DOWN PMI CONV AT 5.25% WITH 5% DOWN LPMI 760 FICO CONV AT 5.375% WITH 5% DOWN LPMI 700 FICO COMPARE FHA/MI/LPMI

3. $200,000 SALES PRICE $7000 minimum down 1% Upfront point in loan .90 monthly factor Maximum seller contribution 6% MI must stay on the loan for a minimum of 5 years and loan must be at 78% to remove FHA WITH 3.5% DOWN

4. 95% LTV WITH PMI .94 MONTHLY FACTOR FALLS OFF AT 80% LTV WILL TAKE 8 YEARS TO HIT 80% WITH NORMAL PAYMENTS GOOD SOLUTION FOR TEMP USE IF FUNDS COMING SOON CONV WITH PMI

5. NO MONTHLY MI MI IS “BUILT INTO THE RATE” WILL NEVER FALL OFF GIVES A SUBSTANTIAL MONTHLY SAVINGS WHEN COPMPARED TO FHA OR TRADITIONAL PMI CONV WITH LPMI

6. LPMI PRICING ADJUSTERS

7. RATE SHEET ADJUSTERS

8. FHA WITH 3.5% DOWN AT 4.625%

9. CONV 5% DOWN WITH PMI AT 4.875%

10. CONV 5% DOWN LPMI AT 5.25%

11. COMPARISON

12. Borrowers with limited cash or low scores should use FHA Borrowers with the ability to put 5% down and have high FICO’s AND plan to pay the loan down quickly should consider PMI Borrowers who have 5% down, high FICO’s and want the lowest payment should consider LPMI BEST EXECUTION