Lender Paid Mortgage Insurance (LPMI) and HARP 2.0 Eligibility

Lender paid MI is a real problem for those doing HARP refi's...the MI cert mostly won't transfer to another lender making it to where you either can't do it or you have to convert to borrower paid MI.

It depends on the lender, but there are some out there that will accept a transferred MI cert... By calling Freddie, they will tell you if the LPMI was paid up front in a single premium, or if they are actually paying it monthly.. if it's monthly, then what ever the premium is, it will be added to your new loan, assuming that the lender does accept transferred MI certs... we have several here in AZ, but I don't lend in FL....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

That does not necessarily mean that you cannot use the HARP program. However, if the Mortgage insurance is being paid monthly, you will have to absorb that payment into your new mortgage. Eating away at your Principal and interest savings.

Lender paid MI is a problem. The new lender is not going to accept lender paid MI for the new loan. This means that in order to qualify, the current MI Company is going have to be willing to convert the policy to a borrower paid policy. Some will and some won't. Secondly, the MI Company has to be acceptable to the new lender. Some are and some aren't. Finally, Freddie Mac HARPS are the hardest to get done, because so few lenders are willing to tackle them. To make your search easier, first find out who issued your MI, and then contact them directly to find out how you would go about converting to borrower paid. Once you know this, it will be easier for you to find a lender that can assist you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

LPMI really isn't a problem for HARP. You will, however, pay PMI monthly going forward when you refinance. The original PMI premium is transferred to your new loan and it will likely be much less than what current premiums are at. It's not a bad thing. You should compare (side-by-side) the benefits of refinancing even with the monthly PMI. You make no mention of your current interest rate. That needs to be factored in to any comparison.I also lend in Florida. Please let me know if you would like more info.