I plan on paying off the house in less than 10 years and am working every scenario possible to find out what will be more financially beneficial. Has anyone done lender paid? How much more interest should I expect? My lender said my rate will be between 3.75% and 4%. I calculated it at 4.25% and am looking at about $16 more per month from the 3.75% rate. Monthly paid insurance will cost me a little more than $68/mo. I know this is cheap, but when you consider my actual payment is $240/month, that insurance is 1/3 my payment and goes to nothing!
If monthly, I have to pay it for 5 yrs minimum, so even if I get above 20% which I will less than 3 years in, I still have to pay.
Any thoughts? I'm going FHA and 3.5% down. Could possibly be 7% down if the down payment assistance program matches my earnest deposit. House is only 55k.
