What is Lender Paid Mortgage Insurance?
What's My Payment?®
FHA, VA, USDA & Conventional Mortgage Payment Calculators

What is Lender Paid Mortgage Insurance?

Avoid paying monthly mortgage insurance by putting as little as 5% down and ask your lender for lender paid mortgage insurance.

posted by: What's My Payment?

Related Calculators

Private mortgage insurance (PMI) is a term every homebuyer will hear if he/she is buying a new home with less than a 20% down payment. PMI is a necessary evil if you don't have the cash available to make that 20% down payment. PMI rates vary, but expect a significant payment increase if you are required to pay it monthly.

Lender Paid Mortgage Insurance

Lender paid mortgage insurance is exactly that. Instead of you paying PMI upfront in a lump sum or monthly as part of your mortgage payment, your lender pays it. Now, as you've probably guessed, this isn't free. Your lender will offer you a slightly higher interest rate in exchange for paying the PMI. However, the payment increase resulting from the higher rate is almost always lower than the monthly PMI you'd be paying on your own.

As with all conventional loans, your down payment, credit score, and loan amount will determine how much extra interest you'll pay with lender paid PMI. As always, talk to your lender about all options available to you and your specific situation.

Related Calculators

*Every effort is made to post valid, up to date information. Mortgage guidelines and programs constantly change. Therefore, the content of each post should be viewed and used as a starting point. Please contact us for current guidelines pertaining to this post or for more information.

Looking for a Lender?

More Helpful Blog Posts

FHA Loan Limits?

Search by county on our
FHA payment calculator page.

Get matched with a lender & start today.

Apply Now

Equal Housing Lender

*All calculations on www.WhatsMyPayment.com are for demonstration purposes only.
Every effort is made to maintain accurate calculations for each program listed. Actual numbers may vary.

Friday, May 26, 2017 © 2012-2017 What's My Payment, LLC