Lender’s mortgage insurance (LMI) protects the lender in the event that you default on your loan and the balance of your loan is greater than what they receive from selling the property. Typically it applies if you borrow over 80 percent of the purchase price but can, depending on the property and borrower, be as low as 70 percent. Premiums can be up to 2 percent of the loan amount. Refinance your loan and not only is their no refund on the premium, regardless of how soon you refinance, you will have to pay it again if you’re loan is over 80 percent of the value of your home.