Massachusetts first-time home buyers now have an additional loan option when considering mortgages to purchase a single-family, condominium or multi-family home.
MassHousing, a self-sustaining agency that does not use taxpayer money, announced on its blog May 20, 2014 a new lender-paid mortgage insurance (LMPI) program that increases a borrower's home-buying power.
Through the program, the lender pays the full mortgage insurance premium for the borrower at the time of closing, which is good for the life of the loan. This cost is offset by a higher interest rate on the mortgage, compared to a loan with borrower-paid MI (BPMI). Even with the higher rate, the LPMI loan generally results in a lower monthly payment for the borrower for the first several years of the loan.