MGIC MI: Make it an Option
Monthly Premiums
Monthly premiums are MGIC’s most widely used option, serving the broadest borrower audience. There is no premium due at closing, which reduces closing costs. Borrowers pay the premiums as part of the monthly mortgage payment.
Monthly premiums are cancellable after an acceptable LTV level has been reached. When they are cancelled, the monthly mortgage payment is reduced by the amount of the MI premium.
Borrowers with adjusted gross household income of $100,000 or less qualify for the maximum MI tax deduction.
Available on:
Full Doc
| Nonrestricted Markets | Restricted Markets | ||
|---|---|---|---|
| Maximum LTV | Minimum FICO | Maximum LTV | Minimum FICO |
| 97% | 680 | 95%* | 680 |
| 95% | 620 | ||
* Beginning August 4, 2008, Arizona, California, Florida, and Nevada maximum LTV will be 90%.
With MGIC Monthly 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 Monthly Premiums as an option?
- those looking to minimize closing costs
- those who anticipate reducing their LTV — by paying down the principal balance or their home's value appreciating because of improvements or market conditions — to qualify for MI cancellation sooner
