CORRECTED-Costs fall to insure debt of U.S. lender CIT

(In second paragraph corrects to 40.5 percent instead of basis points.)

NEW YORK, July 14 (Reuters) - The costs to insure the debt of U.S. lender CIT Group Inc CIT.N against default fell on Tuesday.

CIT's credit default swaps slipped to about 38 percent as an upfront cost, or $3.8 million to insure $10 million in debt for five years, in addition to annual payments of $500,000, down from about 40.5 percent late on Monday, according to Phoenix Partners Group data. (Reporting by John Parry and Dena Aubin; Editing by Theodore d'Afflisio)