No Separate Mortgage Insurance Line.
With lender-paid mortgage insurance, the coverage is built into the loan rather than billed to you each month.
Mortgage insurance without the monthly line item
The coverage still exists. It is simply structured differently.
- Available on the purchase of a principal residence.
- Eligible on a one-unit property.
- Offered on both Fannie Mae and Freddie Mac conventional programs.
- The mortgage insurance is paid by the lender rather than billed to you separately each month.
- Because it is built into the loan, it is not a charge you can cancel later.
- Properties with an appraisal condition or quality rating of C6 or Q6 are not eligible.
Purchase transactions
Principal residence only
One-unit properties
No separate monthly MI line
Fannie Mae and Freddie Mac options
Not cancellable later
What is the Saxton Lender-Paid Mortgage Insurance Loan?
A conventional loan where the mortgage insurance is structured into the loan itself.
Conventional loans with a smaller contribution at closing normally require mortgage insurance, and it usually arrives as a separate line on your monthly statement. Lender-paid mortgage insurance takes a different route. The lender pays the mortgage insurance premium, and the cost is reflected in the loan itself rather than billed to you month by month.
The practical effect is a simpler monthly payment with no separate insurance line. It is available on the purchase of a principal residence on a one-unit property, and it exists on both Fannie Mae and Freddie Mac conventional programs.
The trade-off is real and worth stating plainly. Borrower-paid mortgage insurance can generally be removed once you have built enough equity. Lender-paid mortgage insurance is built into the loan from the start, so there is no separate charge to cancel later. Which structure is better depends on how long you expect to keep the loan, and that is a calculation worth doing before you choose.
Why choose the Saxton Lender-Paid Mortgage Insurance Loan?
For buyers who would rather restructure the insurance cost than carry it as a monthly line.
A Simpler Monthly Payment
There is no separate mortgage insurance charge on the statement, because the coverage is handled inside the loan.
Both Agencies Offer It
The structure is available on Fannie Mae and Freddie Mac conventional programs, so it is not a niche side product.
A Real Trade-Off, Stated Plainly
Because it is not a separate charge, it is not something you cancel later. We will show you the comparison rather than let you find that out afterwards.
Depends On Your Horizon
If you expect to move or refinance within a few years, the math looks different than if you plan to hold the loan for decades.
We Will Run Both Ways
There is no universally right answer here. We would rather price it both ways and let you see the difference.
One Unit, Principal Residence
This structure applies to the purchase of a one-unit principal residence, so the property type is worth confirming early.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about lender-paid mortgage insurance.
No, and it is important to be clear about that. The coverage still exists. The difference is that the lender pays the premium and the cost is built into the loan rather than billed to you as a separate monthly charge.
No. Borrower-paid mortgage insurance can generally be removed once you have enough equity. Because lender-paid coverage is built into the loan, there is no separate charge to cancel.
It depends on how long you keep the loan. Over a short horizon the lender-paid structure often looks better. Over a long one, being able to cancel borrower-paid coverage can win. We can price both.
A one-unit principal residence on a purchase transaction.
Yes. There are both Fannie Mae and Freddie Mac versions of the product.
No. This is for a principal residence.
Among other things, a property with an appraisal condition or quality rating of C6 or Q6 is not eligible. Those ratings indicate significant condition or quality concerns.
Find out what you qualify for
Whether lender-paid or borrower-paid insurance is better comes down to your timeline. Let us price it both ways and show you.
Get Pre-Qualified*Loan amounts, rates, terms, and eligibility are subject to credit approval, income and asset verification, appraisal, and program guidelines. With lender-paid mortgage insurance the coverage is paid by the lender and reflected in the loan, and it is not separately cancellable by the borrower. Purchase transactions on a one-unit principal residence only. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.