Lender-Paid Mortgage Insurance (LPMI)

Lender-Paid Mortgage Insurance is based on the same concept as mortgage insurance (MI). If the borrower finances over 80% of the loan, they are subject to paying mortgage insurance. However, instead of paying an additional mortgage insurance payment each month, the lender pays the MI premium and charges a slightly higher interest rate. Homebuyers may find LPMI offers advantages over the more traditional borrower-paid MI. Click here for more in-depth information.

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