Our split premium mortgage insurance (MI) option may be good for a borrower who wants to reduce the monthly MI premium in order to qualify for a larger loan amount.
It offers ultimate flexibility because the cost of MI can be divided into a single, upfront premium payment and a lower monthly payment. The upfront portion can be paid several ways, including by a third party (e.g., seller, builder, lender) or financed into a borrower’s mortgage loan.
The split premium option is available as refundable or non-refundable. With refundable split premium MI, a partial refund may occur depending on the amount of time the MI coverage was in place. Non-refundable split premium MI may also result in a partial refund if it is canceled under the Homeowners Protection Act of 1998 (HPA). Read Removing PMI to learn more.