48 Meriden Rd, Suite 1, Middlefield, CT 06455

Lender-paid mortgage insurance (LPMI)

When your down payment is less than 20% of the home’s value, the lender can pay the insurance costs upfront, in which its cost is included in the interest rate. This help provide protection against financial loss. Although the interest rate is slightly higher with LPMI, this option usually results in a lower monthly payment and a potential tax deduction. (Consult your tax advisor.)