Historically, the 20% down payment has been a big hurdle for many first-time homebuyers. You can help more renters become buyers when you think of MI as a tool that can help them become homeowners instead of waiting on the sidelines.
MI when your borrowers need it — not when they don’t
Private MI can usually be canceled when the loan either reaches the cancellation point due to amortization of the original loan amount, or the borrowers request cancellation based on an increase in their home value due to appreciation or home improvements. For many borrowers, that may be an advantage over an FHA loan. FHA typically doesn’t allow borrowers to cancel the monthly MI payment unless they put down 10% or more.
MI cancellation gives you an additional opportunity to stay connected to your borrowers. They’ll thank you when you get in touch to notify them they may be able to cancel! Get more details on MI cancellation.