What is LMI?
When researching necessary information to successfully purchase a home, a potential buyer may come across terms that are hard to define. Lenders Mortgage Insurance (LMI) keeps a lender safe in a loan agreement in certain situations that end in foreclosure or borrowers not paying the scheduled and agreed upon loan payments. LMI also assists homeowners who have low deposit payments to successfully purchase a home which results in more expensive monthly payments.
LMI is non-refundable and the cost varies on individual lenders. A potential buyer can contact their lender to obtain more specialized information. A homeowner that places a 20% or higher deposit on a home will be exempt from paying for LMI, and a first-time owner approved for the First Home Loan Deposit Scheme are also exempt.
If a potential buyer has not selected a lender to work with on their home buying journey, that will need to be completed for successfully purchasing a home. At Mortgage House, we are specialized and professional lenders who offer a wide variety of services required for buying a home. Our Mortgage Repayment Calculator is available to any potential buyer in need and allows for specialized estimates for mortgage repayments.
What is LMI Conclusion
Lenders Mortgage Insurance maintains a lender’s safety from any issues that may arise due to a borrower not following through with agreed-upon loan payments and cases that lead to the foreclosure of a home. If a potential buyer needs further assistance with Lenders Mortgage Insurance, our staff at Mortgage House are equipped to adequately aid anyone in need.