Mortgage insurance premium plans

Flexible MI premium options to meet your borrowers' needs

Because every mortgage is different, we give you the competitive advantage of custom-fitting your borrowers' unique needs with flexible and affordable mortgage insurance solutions.

Borrower-Paid Mortgage Insurance (BPMI) Monthly Premiums

Borrower-paid Monthly Premiums are the most widely accepted premium plans in the industry because of their simplicity and ease of use. Other advantages include:

• No money due at closing
• No upfront cost – Borrowers avoid the decision whether to pay the premium up front or finance it and add to their debt
• Cancellable – Borrowers can request cancellation based on investor requirements or under the Homeowners Protection Act of 1998 (HPA). Lenders must automatically cancel under HPA terms. Learn more
• Lower monthly payment upon cancellation – If MI is cancelled, the borrower’s monthly mortgage payment is reduced by the monthly premium amount
• Build equity faster – With no premium financed into the loan amount and no increase to their interest rate, borrowers are able to build equity more quickly than with other premium plans

Who should consider borrower-paid Monthly Premiums?

Borrowers who want to:

• Minimize closing costs
• Qualify for MI cancellation sooner by making extra payments that reduce the mortgage balance ahead of the original amortization schedule or home improvements that result in an increase in the appraised value
• Lock in the lowest interest rate now and a lower monthly payment without refinancing
• Refinance, even if their appraised value was lower than expected and their LTV is slightly above 80%

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Borrower-Paid Mortgage Insurance Single Premiums

Borrower-paid Single Premiums are available in both refundable and non-refundable options. Advantages include:

• Lower monthly payment – The absence of a monthly MI payment often provides a lower monthly payment than our Monthly or Split Premiums afford
• Flexibility – The borrowers, seller, builder or other third party can pay the premium at closing. Lenders may offer a lender credit to cover the cost of the premium. The borrowers can opt to finance the premium into the loan amount. (While base LTV is used to determine MI coverage requirements, financing the premium into the loan amount may increase the total LTV/CLTV. Check investor guidelines.)
• Cancellable – Borrowers can request cancellation based on investor requirements or under the Homeowners Protection Act of 1998 (HPA). Learn more
• Refundable – Borrowers who select refundable Single Premiums may receive a refund if they cancel MI within the first 5 years of coverage. Even those who select the non-refundable option may be eligible for a refund if they or their lender cancel MI under the HPA

Who should consider borrower-paid Single Premiums?

Borrowers who want to:

• Minimize their monthly payment, even if it means paying more at closing or increasing their debt by financing the premium into the loan amount
• Get the seller or builder to pay the premium – especially in a buyer’s market
• Qualify for MI cancellation sooner by making extra payments that reduce the mortgage balance ahead of the original amortization schedule or home improvements that result in an increase in the appraised value

Get a rate quote

Borrower-Paid Mortgage Insurance Choice Monthly Premiums

Borrower-paid Choice Monthly Premiums give your borrowers the option of paying part of the MI premium up front to reduce the monthly MI premium amount. Advantages include:

• Upfront options – Flexible upfront options allow you to custom-fit the right monthly payment for your borrower
• Flexibility – The borrowers, seller, builder or other third party can pay the upfront portion of the premium at closing. Lenders may offer a lender credit to cover the cost. The borrowers can also opt to finance the upfront premium into the loan amount. (While base LTV is used to determine MI coverage requirements, financing the premium into the loan amount may increase the total LTV/CLTV and have other loan pricing implications. Check MGIC investor guidelines.)
• Monthly portion is cancellable – Borrowers can request cancellation on the monthly portion of the premium based on investor requirements or under the Homeowners Protection Act of 1998 (HPA). Lenders must automatically cancel under HPA terms. Learn more

Who should consider borrower-paid Choice Monthly Premiums?

Borrowers who want to:

• Reduce their monthly mortgage payment
• Get the seller or builder to pay the upfront portion – especially in a buyer’s market
• Qualify for MI cancellation sooner by making extra payments that reduce the mortgage balance ahead of the original amortization schedule or home improvements that result in an increase in the appraised value

Get a rate quote

Borrower-Paid Mortgage Insurance Split Premiums

Borrower-paid Split Premiums give your borrowers the option of paying part of the MI premium up front in order to reduce the monthly MI premium paid along with their mortgage payment. Advantages include:

• Multiple upfront options – We offer 6 different upfront options to allow you to custom-fit the right option for your borrower
• Flexibility – The borrowers, seller, builder or other third party can pay the upfront portion of the premium at closing. Lenders may offer a lender credit to cover the cost. The borrowers can also opt to finance the upfront premium into the loan amount. (While base LTV is used to determine MI coverage requirements, financing the premium into the loan amount may increase the total LTV/CLTV. Check investor guidelines.)
• Monthly portion is cancellable – Borrowers can request cancellation on the monthly portion of the split premium based on investor requirements or under the Homeowners Protection Act of 1998 (HPA). Lenders must automatically cancel under HPA terms. Learn more

Who should consider borrower-paid Split Premiums?

Borrowers who want to:

• Reduce their monthly mortgage payment
• Get the seller or builder to pay the upfront portion – especially in a buyer's market
• Qualify for MI cancellation sooner by making extra payments that reduce the mortgage balance ahead of the original amortization schedule or home improvements that result in an increase in the appraised value

Lender-Paid Mortgage Insurance (LPMI) Single Premiums

Lender-paid Single Premiums are paid by the lender at the time of insurance activation. Lenders often either increase the interest rate or charge borrowers an origination fee to cover the cost. Coverage remains in place for the life of the loan and can’t be cancelled by the borrower. Advantages include:

• Lower monthly payment – The absence of a monthly MI payment often provides a lower monthly payment than our Monthly or Split Premiums afford
• Ease of use – Because the borrower pays no upfront premium and no monthly payment, it’s easy to explain to the homebuyer
• Marketing opportunity – Many lenders market LPMI Singles as a “No MI” program or promote they’re willing to pay the MI for borrowers

Who should consider lender-paid Single Premiums?

Borrowers who want to:

• Minimize their monthly payment in the short term, even if it means forfeiting MI cancellation and the chance to reduce their monthly payment in the future
• Get the seller or builder to pay origination fees – especially in a buyer’s market

Get a rate quote