How does Private Mortgage Insurance (PMI) compare to Lender Paid Mortgage Insurance (LPMI)?

Answer by  tamarawilhite (17883)

Private Mortgage Insurance (PMI) is paid by the person who is living in the house paying mortgage insurance. The Lender Paid Mortgage Insurance (LPMI) is a separate policy paid by the bank or company that loaned you the money to buy the house.

Answer by  ML (122)

A monthly premium is added to the borrower's housing payment for the Private Mortgage Insurance. The interest rate is increased to cover the cost of the Lender Paid Mortgage Insurance.

Answer by  cb31 (226)

PMI tends to be more costly to the homeowner than LPMI. Either way, the consumer is paying for it, but PMI has higher rates.