Is PMI cheaper if paid as a lump sum upfront?
Is PMI cheaper if paid as a lump sum upfront?
My husband and I are buying a house ($265.000), we are only putting 5% down and we are going to have to pay PMI. our loan is for 15 years, and I wanted to pay PMI upfront. our monthly payment if paying PMI monthly is $182.52 for 34 months, which is $6206.68 total. When I asked the mortgage company how much it would if we want to pay a lump sum upfront, they told me it would be $8100. Now, it doesnt make any sense to me. everything I read online says that when you pay it upfront you get a discount. I thought, it at least should be the same but not more. Is this right? We are closing tomorrow so need to decide this today. I would certainly appreciate some help. Thank you
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