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MGIC MI Solutions
Split Premiums

Split Premiums provide your borrowers the option of paying a part of the MI premium up front in order to reduce the monthly MI premium paid along with their mortgage payments. MGIC offers six different up-front options.

The initial premium may be financed into the loan or paid by a third party, such as a builder or a seller, keeping the borrower's closing costs down and the monthly MI premium low.

Borrowers with adjusted gross household income of $100,000 or less qualify for the maximum MI tax deduction.

With MGIC Split Premiums, you can:

  • Structure high-LTV loans
  • Finance higher loan amounts
  • Enhance your role as Trusted Advisor and differentiate yourself from your competition by:
    • broadening the options you provide borrowers
    • notifying borrowers when they may be able to cancel MI and reduce their monthly mortgage payment

Which borrowers should consider MGIC Split Premiums as an option?

  • Borrowers with available cash at closing whose main concern is keeping the monthly mortgage payment as low as possible
  • Borrowers purchasing a home in a buyer's market with motivated builders and sellers willing and able to foot the bill
  • Borrowers who anticipate reducing their LTV — by paying down the principal balance or by their home's value appreciating because of home improvements or market conditions — to qualify for MI cancellation sooner

Check MGIC Eligibility Guideline Summary (PDF)

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Our MI Options Calculator compares MI and non-MI options side-by-side.