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NJ Mortgage Resources

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          Learn more about the NJ mortgage process with our educational resources for homeowners.

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        • What is a Mortgage?A mortgage is simply a lien that is put on a property by a bank or lender of money to assist a consumer to obtain funding in order to purchase that property.
        • Mortgage Pre Approval vs. Pre QualificationAs a technical matter is there are actually 3 levels of “Pre-Approval” available as a lead-up to your mortgage.
        • What Factors Go Into Qualifying for a Mortgage?There are four main categories that a bank will review when they qualify you for mortgage financing, otherwise known as the four pillars of qualifying: Income, Assets, Credit, and Debt.
        • What is PMI Insurance?Private Mortgage Insurance (PMI) is quite simply an insurance policy that protects the mortgage lender in case of default on the mortgage.
        • New Jersey Mortgage Application ChecklistBeing fully prepared leading up to your application can prevent a lot of troubles and tribulations, which can be detrimental and emotionally taxing especially after you’ve gone to contract on your new home.
        • What Is The Minimum Down Payment For a House in NJ?Depending on your circumstances you may be looking to get into a property for the least amount of cash possible.
        • What Are The Three Different Types of Mortgage Lenders?There are 3 different types of lending companies that originate mortgage loans. Banks, Brokers, and Mortgage Bankers.
        • What Determines Mortgage Rates?A variety of factors lend their hand in the determination of where a particular lender will be on rates.
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Lender Paid Mortgage Insurance (LPMI) Single Premiums

Lender Paid Mortgage Insurance (LPMI) is a type of PMI insurance in which the lender pays the single premium at the time of insurance activation. They do not do this free of charge – lenders often either increase the interest rate or charge borrowers an origination fee to cover the cost. Because it is built into the loan, coverage remains in place for the life of the loan. Therefore, it can’t be canceled by the borrower when 78% equity in the home is reached as with BPMI, and the interest rate will not go down once 22% equity is accrued. Advantages of lender paid single premiums include:

  • Lower monthly payment – The absence of a monthly MI payment often provides a lower monthly payment than Monthly or Split Premiums afford
  • Ease of use – Because the borrower pays no upfront premium and no monthly payment, it’s easy to understand

Who should consider Lender Paid Mortgage Insurance (LPMI) Single Premiums?

Borrowers who want to:

  • Minimize their monthly payment in the short term, even if it means forfeiting MI cancellation and the chance to reduce their monthly payment in the future
  • Get the seller or builder to pay origination fees – especially in a buyer’s market
  • Home buyers who intend to keep the mortgage for at least five to ten years

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Related Links

  • What is PMI Insurance?
  • Monthly Premium Borrower Paid Mortgage Insurance (BPMI)
  • Borrower Paid Single Premium Mortgage Insurance (SPMI)
  • Borrower Paid Split Premium Mortgage Insurance
  • Lender Paid Mortgage Insurance (LPMI) Single Premiums

Have more questions relating to LPMI?

Get customized answers for your situation here:

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NJMortgageResources.com provides homeowners with all the information they need to navigate the complex New Jersey mortgage process and get the best rate possible for their situation. Browse our educational resources and get a free customized rate quote from one of our top NJ mortgage specialists who can also help you with any additional information you may need or questions you may have.

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  • Glossary
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Resources

  • What is a Mortgage?
  • New Jersey Mortgage Application Checklist
  • Mortgage Pre Approval vs. Pre Qualification
  • What Is The Minimum Down Payment For a House in NJ?
  • What Factors Go Into Qualifying for a Mortgage?
  • What Are The Three Different Types of Mortgage Lenders?
  • What is PMI Insurance?
  • What Determines Mortgage Rates?

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