MGIC MI: Make it an Option
Split Premiums
Split Premiums provide your members the option of paying a part of the MI premium up front in order to reduce the monthly MI premium paid along with their mortgage payments. MGIC offers different up-front options with premium rates of 1.0%, 1.25%, 1.50% and 2.0% of the loan amount.
The initial premium may be financed into the loan or paid by a third party, such as a builder or a seller, keeping the borrower's closing costs down and the monthly MI premium low.
Members with adjusted gross household income of $100,000 or less qualify for the maximum MI tax deduction.
With MGIC Split 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 members
- notifying members when they may be able to cancel MI and reduce their monthly mortgage payment
Which members should consider MGIC Split Premiums as an option?
- those with available cash at closing whose main concern is keeping the monthly mortgage payment as low as possible
- those purchasing a home in a buyer's market with motivated builders and sellers willing and able to foot the bill
- those who anticipate reducing their LTV — by paying down the principal balance or by their home's value appreciating because of home improvements or market conditions — to qualify for MI cancellation sooner
