Lender Paid Mortgage Insurance (LPMI)
Private mortgage insurance (PMI) is required on conventional (non-government) loans with loan amounts greater than 80% of the home value. PMI protects lenders from potential losses due to non-payment of the loan. PMI is not the same as homeowners insurance, which protects you from losses due to such things as fire, wind, and vandalism.
There are two types of mortgage insurance:
- Borrower-paid mortgage insurance (BPMI)
- Lender-paid mortgage insurance (LPMI)
|Lender-paid mortgage insurance||Borrower-paid mortgage insurance|
|May be an option if you:
||May be an option if you: