What is P.M.I?
Private mortgage insurance, commonly referred to as PMI, is a type of insurance required on conventional loans where the loan amount is greater than 80% of the property value or purchase price. For conventional loans, the PMI may be eliminated once a minimum of 20% equity has been established.
Lender paid mortgage insurance. (LPMI)
LPMI allows borrowers to waive the monthly premium amount. The overall monthly payment is typically less than a loan with BPMI, even with a slightly higher interest rate.
Borrower paid mortgage insurance. (BPMI)
BPMI is a pre-determined premium amount that is added to your monthly mortgage payment.