COVID-19 updates and resources - updated 09/30/21 Dismiss Alert Mortgage insurance premium plans Compare our 4 most popular premium plans to determine which best suits your borrower. rates 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 Mortgage Insurance Single Premiums Borrower-Paid Mortgage Insurance Split Premiums Lender-Paid Mortgage Insurance (LPMI) Single Premiums Cancellable plan offers borrowers the simplicity of combining their MI premium with their monthly mortgage payment. Ideal for budget-conscious borrowers, this cancellable and refundable plan can be financed into the loan to minimize monthly mortgage payments. Borrowers needing flexibility get more options for reducing their monthly mortgage payment. This lender-paid plan allows borrowers to minimize their monthly payments in the short term. See details See details See details See details Borrower-Paid Mortgage Insurance (BPMI) Monthly Premiums Borrower-paid Monthly Premiums make up the most widely accepted premium plan 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 premium upfront or finance it, adding 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, but whose appraised value was lower than expected and LTV is slightly above 80% Get a rate quote Borrower-Paid Mortgage Insurance Single Premiums Borrower-paid Single Premiums are available in both refundable and nonrefundable options. Advantages include: Lower monthly payment – The absence of a monthly MI payment often provides a lower monthly payment than 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); lenders must automatically cancel under HPA terms. 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 nonrefundable 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 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, similar to FHA loans. Advantages include: Multiple upfront options – We offer 6 different upfront options to allow you to custom-fit the right option for your borrower – unlike FHA’s upfront premium, where one size fits all 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.) 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: Reduced their monthly mortgage payment Get the seller or builder to pay the upfront portion – especially in a seller’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 See our BPMI Split Premium rate cards Lender-Paid Mortgage Insurance (LPMI) Single Premiums The lender pays the LPMI Single Premium 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 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 You might also like Quick quote Get the right rate, right now, from MiQ. Get a quick quote New to MGIC? Apply for an MGIC Master Policy and sign up for secure web services. Welcome to MGIC Contact Customer Service We’re ready and waiting to answer any questions you might have. Contact us now Resources Monthly MI Premiums and TRID Single Premiums and TRID Split Premiums and TRID Lender-Paid Single Premiums and TRID PO Terms Legal Site Security Site Map © Copyright 2021 All rights reserved. About MGIC About MGIC Careers Contact Us Master Policy MI Basics New To MGIC Popular Links First-time homebuyers Get a Rate Quote Homebuyer education Self-employed borrower worksheets Training MGIC Websites Credit Unions For Investors Loan Officer Hub MGIC Connects Readynest - Tips for homebuyers MGIC Connects Facebook LinkedIn Twitter YouTube Cookies help us improve your website experience. By using our website, you agree to our use of cookies. Privacy Warning Confirm