MGIC MI: Make it an Option
Monthly Premiums
This is the most common premium plan. The MI is collected monthly with the borrowers’ mortgage payment. With Monthly, one month’s premium is due at closing, whereas with ZOMP! – no premium is due at closing, rather the premium is paid the month the first payment is due.
With Mortgage Insurance you can:
- Increase commission by getting paid on 1 higher loan amount
- Simplify processes with 1 loan – 1 set of guidelines and 1 set of docs
- Receive improved underwriting decisions
- Offer borrowers 1 low monthly payment
- Provide borrowers a one-loan tax-deductible solution
- Lower borrowers’ monthly payment in the future when MI is canceled
- Save borrowers money at closing by eliminating costs associated with a second mortgage
Which borrowers should consider Monthly/ZOMP! as an option?
- ZOMP! is an excellent choice for those looking to minimize closing costs.
- The Monthly/ZOMP! premium is 100% tax deductible for qualifying borrowers.
- Borrowers who anticipate owning their home more than five years, making major home improvements or quickly paying down their mortgage balance should consider this plan.
| Assumptions: Property Value $300,000; 100% LTV (non-Restricted Market); 700 FICO Score; 45% Debt-to-Inclome Ratio; 1st and 2nd Mortgage Term 30-Year Fixed; Charter Level Coverage* of 20%; Home Appreciation Rate of 5% | ||
| MGIC Monthly Premium |
Piggyback | |
|---|---|---|
| 1st Mortgage Amount | $300,000 | $240,000 |
| MI Premium Financed | $0 | $0 |
| 2nd Mortgage Amount | $0 | $60,000 | Total Amount Borrowed | $300,000 | $300,000 |
| Starting Interest Rate | ||
| 1st Mortgage | 6.750% | 6.750% |
| 2nd Mortgage | 0.000% | 10.375% |
| Monthly Payment | ||
| 1st Mortgage | $1,946 | $1,577 |
| MI Payment | $148 | $0 |
| 2nd Mortgage | $0 | $543 |
| Total Monthly Payment | $2,094 | $2,100 |
| *Fannie Mae's MyCommunityMortgage®or Freddie Mac's Home Possible® | ||
