Does this seem like a good refinancing option for a LPMI loan? WE don't want PMI and would like a larger tax savings.

Let's see. A 3.875% rate, on a loan that needs mortgage insurance. So you choose the single premium option, and choose to handle your own escrows for taxes and insurance. That is a good option generally speaking. It's a bit hard to figure out exactly what you are getting without knowing more details. Simply contact another licensed lender in your area for a second opinion. As a side note, anyone telling you that you get to skip two payments - you should run from. You are not skipping anything - it is smoke and mirrors. If you don't pay your loan when due, your payoff amount will simply be larger because you didn't make the payment that month. Therefore making your new loan larger while pretending you get to skip two payments. Do not confuse this with the simple fact that you always do not have a payment the month after closing. For example, if you close in Oct, your first new payment will be Dec 1st.

Without getting in the middle of this fued between Joe and IBennet, and without even commenting on your particular loan offer. I will always say that you should get 3-5 different loan offer and compare for your best option. Do not forget that you should try to obtain these offers on the same day if possible to truly be able to compare apples to apples. Best Of Luck!

So if I'm seeing this right, you're getting a total of 4.19 rebate, but after all costs and credits, your left with a remainder of $972 to close.. The rate is 3.875%, and no mortgage insurance to you (Lender Paid upfront through rebate). Total closing costs $3145. Without seeing the fee's worksheet or the HUD-1, it's hard to be accurate, but based on the info you provided, it looks like a good deal.. it's possible you could get 1/8 lower in rate, but that would result in a lower rebate, in turn costing you more out of pocket, but if you're happy with your Lender, then just go with it.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Let's see. A 3.875% rate, on a loan that needs mortgage insurance. So you choose the single premium option, and choose to handle your own escrows for taxes and insurance. That is a good option generally speaking. It's a bit hard to figure out exactly what you are getting without knowing more details. Simply contact a second licensed lender in your area for a second opinion. As a side note, anyone telling you that you get to skip two payments - you should run from. You are not skipping anything - it is smoke and mirrors. If you don't pay your loan when due, your payoff amount will simply be larger because you didn't make the payment that month. Therefore making your new loan larger while pretending you get to skip two payments. Do not confuse this with the simple fact that you always do not have a payment the month after closing. For example, if you close in Oct, your first new payment will be Dec 1st.

Frankly, as "lbennett" says above, the rate does seem a little high - possibly because the broker may be charging more than you could find by checking around. My suggestion is to call another lender and get their quote. Remember that rates and the amount of rebate a lender can give you will vary at least a little bit from day today. You didn't mention the type of property, if it is a condo that could mean a higher cost and bring it closer to the norm.

Just one observation... How is the lender offering to waive escrow impounds when you have less than 20% equity? Maybe the lender has some specialty program? Generally, you cannot waive escrows when you have PMI.