When "borrower paid" compensation is selected, you may not receive compensation directly or indirectly from any other entity in the transaction. "Lender Paid" is based on pricing negotiated between the broker and the lender.
What is lender paid?
Lender-paid mortgage insurance (LPMI) protects the lender if you default on your loan and allows you to buy a home with less than 20% down. LPMI won't increase your monthly payment as much as private mortgage insurance (PMI), but there are trade-offs.
What is borrower paid mortgage?
Borrower-paid mortgage insurance (BPMI) monthly premium options allows homebuyers to fold their MI premiums into their monthly mortgage payments, starting with their first payment. With this solution, homebuyers have the ability to cancel their MI when they reach 80% equity in their homes.