Lender-Paid Private Mortgage Insurance
Private mortgage insurance that a mortgage lender pays on behalf of a borrower. Mortgage lenders generally require private mortgage insurance if a mortgage has a loan to value (LTV) ratio of more than 80%. When a lender pays the private mortgage insurance on behalf of the borrower, they do so in exchange for charging the borrower a higher interest rate. In other words, the borrower still pays for the private mortgage insurance, but does so in the form of a higher interest rate.

Investopedia Says:
The economics of the choice between paying private mortgage insurance, choosing lender paid private mortgage insurance, or using a second mortgage to avoid private mortgage insurance altogether is a function of how long borrowers estimates they will remain in a home or how long before they might refinance their mortgages and how quickly they estimate their home will appreciate.

Related Terms:
80-10-10 Mortgage
Mortgage
Mortgage Originator
Mortgagee
Mortgagor
Private Mortgage Insurance - PMI

• Trailing Stop
• Trailing Twelve Months (TTM)
• Trailing Twelve Months (TTM)
• Tranches
• Transaction
• Transaction Costs
• Transaction Exposure
• Transaction Risk
• Transfer
• Transfer Agent
• Transfer Of Risk
• Transfer On Death (TOD)
• Transfer On Death (TOD)
• Transfer Payment
• Transfer Price
• Transfer Procedures
• Translation Exposure
• Translation Risk
• Transparency
• Transportation Expenses
• Transportation Sector
• Traunch
• Traveler's Check
• Travel Expenses
• Treasury Automated Auction Processing System (TAAPS)