Is lender-paid PMI a good deal compared with monthly PMI?

With lender-paid mortgage insurance (LPMI), the lender covers the PMI premium in exchange for charging you a higher interest rate. The upside is a lower monthly payment than borrower-paid PMI and no separate PMI line item. The big downside: unlike borrower-paid monthly PMI, you can't cancel LPMI once you hit 20% equity because it's baked into your rate for the life of the loan. So LPMI can win if you'll refinance or move within a few years, but borrower-paid PMI usually wins if you'll stay long enough to reach 20% equity and drop it. Because the higher rate is permanent, run both scenarios over your expected holding period rather than just comparing month-one payments.