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