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Lenders Mortgage Insurance (also known as LMI) is insurance payable to a lender when taking out a mortgage. It is an insurance in the case that the mortgagee is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property.
The LMI may be payable up front, or it may be capitalized onto the loan.
See also:
- private mortgage insurance (PMI)
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