Below is the generic example that goes out as a disclosure to borrower who select LPMI. This clearly shows that LPMI is not only better in the short run, but even over the course of ten years.
What it does not show is the exact dollar difference, instead its expressed in the form of LTV%. I will make it EZ for you. Since they leave out the purchase price and home value, you have to just estimate based on the original loan amount. However my math shows that your loan amount will be $375.00 higher after 10 years based on LPMI, however you paid $2,600.00 less. So really you saved $2,225.00. Even if you re financed or sold the home after 6 months, you will have saved even more. So if you ask me, always jump at the chance to get LPMI regardless of weather home values are going up or not, because rates could be going up with the values and therefore LPMI still would have been the best option.
However if you have to go FHA because of the requirements for a conventional LPMI, you have no choice but to go BPMI.
