It’s really a personal decision as to whether or not to chose the newer MIP of 1.25% vs. .50%. If you have the choice, the newer loan with the higher MIP will yield more money, as stated in another post but what will be the difference in the ongoing costs? They will be higher but how much? Simple math will fix this and make your decision much easier.
Current loan note rate 5.56%
Plus current MIP .50%
Total Annual Rate 6.06%
New loan note rate 4.99%
Plus new MIP 1.25%
Total Annual Loan Rate 6.24%
It is a difference of just .18%, boy do I love it when things work out nicely like this.
Michael Manfredi is a Reverse Mortgage Specialist in Phoenix, Arizona
Reverse Mortgage Concepts
Phoenix, AZ 85020
(602) 456-0009
(888) 697-5556
If you enjoyed this article, please consider sharing it!
