LPMI

Business & Finance abbreviation · Real Estate & Mortgage

LPMI
Stands forLender-paid mortgage insurance
CategoriesBusiness & Finance

LPMI stands for Lender-paid mortgage insurance, a real estate & mortgage abbreviation.

Arrangement in which the lender pays the mortgage insurance premium on a low-down-payment conventional loan in exchange for a higher interest rate, removing the separate monthly PMI charge.

Example: LPMI made our payment lower now, but the higher rate stays for the life of the loan.

Usage notes

Unlike borrower-paid PMI, LPMI cannot be canceled when equity reaches 20%, so it suits buyers who expect to sell or refinance within a few years.

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