Ameristar Mortgage Blog

Illinois and Wisconsin lender paid mortgage insurance was created to allow lenders to pay for the policy on behalf of the client and pass the cost onto the customer through the interest rate they pay on the mortgage. Lender paid mortgage insurance is issued by a private company that protects the mortgage lender against some or all of the loss caused by a default on a mortgage loan.

LPMI is generally required by lenders for borrowers with a down payment of less than 20% of the home purchase price. It only terminates when the mortgage loan is paid off, refinanced, or is otherwise terminated.

Visit our Lender Paid Mortgage Insurance page for Wisconsin and Illinois LPMI programs available.

Lender paid mortgage insurance allows the lender to pay any applicable mortgage insurance premium directly, which means all you need to pay is your one mortgage payment, instead of one mortgage and one insurance payment or two separate mortgage payments. LPMI is often required when the amount of money you borrow exceeds 80% of the value of your home.

“Lender paid mortgage insurance (LPMI) is just PMI that is being paid through a higher interest rate. Benefits of lender paid mortgage insurance and a single loan: Simplify the mortgage process with only one loan, one payment.

LPMI is nothing new; it just wasn’t as popular back when private mortgage insurance was still cheap and home values were leaping year-over-year. By paying a little higher interest rate and no mortgage insurance, you will save money from your monthly mortgage payment as opposed to if you were to obtain a loan that had PMI added on to your payment.

Visit our Lender Paid Mortgage Insurance page for Wisconsin and Illinois LPMI programs available.

Dennis Hardy
Local: (608) 242-0826 x23
Toll Free: (877) 240-5840
dennis.hardy@ameristarmadison.com
www.AmeristarMadison.com

Visit my blog at http://www.ameristarmadison.com/blog/