Lender-Paid Mortgage Insurance
Beneficial to Lenders, Tax Savings for Borrowers
It's simple. The lender pays the MI premium and charges a slightly higher interest rate.
For many homebuyers, Lender-Paid Mortgage Insurance (LPMI) offers significant advantages over the more traditional borrower-paid MI or even
other loan options.
- No monthly MI premium
- No MI closing costs
- Lower monthly mortgage payment (in most cases, compared to mortgage payment plus
traditional MI premium)
- Potential for qualifying for a larger loan
- Potential for greater tax benefits
- Significant savings over the life of the loan
Lenders also benefit in several important ways.
- Secondary marketing execution
- Excess servicing profits
- Risk-based pricing option that lets you offer even better
rates to creditworthy customers
- Monthly or single-premium payment options
How does LPMI compare to other types of MI or piggyback loans? View the
comparison chart or calculate LPMI vs. other payment options.
More questions? Contact our MI professionals.
View LPMI rates and guidelines.
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