Borrower-paid mortgage insurance (BPMI) monthly premium options allows homebuyers to fold their MI premiums into their monthly mortgage payments, starting with their first payment. With this solution, homebuyers have the ability to cancel their MI when they reach 80% equity in their homes. It automatically cancels when they reach 78% equity.*
BPMI monthly options may be appropriate for borrowers who earn $109,000 or less and who file long-form tax returns. Borrowers have the flexibility to pay their initial MI premium at closing or with their first mortgage payment. BPMI can also be canceled or removed subject to certain requirements.
*MI cancellation at 80% loan-to-value (LTV) is subject to lender requirements. Cancellation at 78% is subject to the requirements of the Homeowners Protection Act of 1998.