Lender-Paid Mortgage Insurance

LPMI, or lender-paid mortgage insurance, refers to a situation in which your mortgage lender pays for your mortgage insurance. While there are various ways to pay for mortgage insurance, the most typical is a monthly charge added to your mortgage payment. Lender-paid mortgage insurance incorporates the cost of insurance coverage into the mortgage rate. In essence, instead of a more outstanding monthly mortgage payment, you'll pay a higher interest rate.