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PRIVATE MORTGAGE INSURANCE DISCLOSURE Loan Number: Property Address: You have applied for a mortgage loan that requires private mortgage insurance (PMI). PMI protects lenders and others against financial.

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Lender-paid private mortgage insurance (LPMI) protects the lender if you're unable to make payments. Some lenders offer it to borrowers who want a PMI-free conventional mortgage without making a 20% down payment.

Private mortgage insurance, also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan.

In most cases with conventional loans, a down payment smaller than 20 percent will require some form of private mortgage insurance, or PMI. One of those options is lender-paid mortgage insurance, commonly known as LPMI.

Most often, borrower paid MI (BPMI) is used, which is paid monthly by the borrower and can be cancelled after 20 percent equity in the mortgage is established. Lender paid MI (LPMI) is another form of MI. Because the cost of LPMI is not in the form of a monthly payment, it is not cancellable.

Finally, LPMI is fully tax-deductible. LPMI is paid through a higher interest rate. And, when you itemize your returns, mortgage interest is deductible.

Lender-Paid Mortgage Insurance (LPMI) It's important to remember that, unlike BPMI, you cannot cancel LPMI. LPMI sticks around for the life of the loan, and you'll need to continue paying the same interest rate after you reach 20% equity.

The most significant benefit of LPMI is that it can yield lower monthly payments than borrower-paid PMI. LPMI can be a money-saver for short-term homeowners. If you plan to sell before you have 20 percent equity, you can take the short-term savings and not worry about longer-term costs.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232