The premium payments offers included deferred & contingent (i.e. the premium is only payable in the event of success), fully
upfront premium options, blended and damages based premiums i.e. premiums calculated as a percentage of damages.
Not exact matches
Similar to other FHA loan products, down payment
options run as low as 3.5 %, and borrowers must pay both an annual mortgage insurance payment (MIP) and an
upfront insurance
premium (UFMIP).
Until recently, when the cost of FHA's
upfront mortgage insurance
premiums increased from 1.75 % tp 2.25 %, it was taken for granted that FHA was the cheaper
option, all the time, end of story.
The
premium you receive
upfront for selling the put
option allows you to profit if the sector moves higher, and it offsets the short - term downside risk.
This program is truly ideal; with only a 2.15 %
upfront premium and no monthly payments, it is the cheapest
option for mortgage insurance.
Still, paying
upfront may reduce the total amount you spend on mortgage insurance, making single -
premium insurance another viable
option depending on your lender's practices.
This roll cost of VIX futures is equivalent to the
upfront premium for equity put
options.