MI Products

Split Premium

Split premium mortgage insurance (MI) options 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 with the remainder of the premium folded into the homebuyer’s monthly mortgage.

Borrower-Paid Single

Borrower-paid mortgage insurance (BPMI) single premium options may be a good choice for a borrower who wants to keep the monthly payment low. The BPMI single option allows homebuyers or other parties (e.g., sellers or builder assists) to pay the full premium up front at closing or to finance it into the loan.

Lender-Paid Single

Lender-paid mortgage insurance (LPMI) single premium options may be appropriate for lenders who want to make a one-time, upfront MI premium payment at closing. Lenders can opt to factor the cost of MI into the interest rate they charge homebuyers on their loans or they can charge an origination fee to cover the premium.

LPMI coverage cannot be canceled and remains in effect until the loan is paid off or refinanced.

Lender-Paid Monthly

Lender-paid mortgage insurance (LPMI) monthly premium options allows lenders to pay the monthly premiums and factor that cost into the interest rate they charge homebuyers on their loans or they can charge an origination fee to cover the premium.

LPMI monthly premium option may make sense for lenders who want to pay the monthly MI premiums and factor the cost into the interest rate that charge on borrowers’ mortgage loans. LPMI coverage cannot be canceled and remains in effect until the loan is paid off or refinanced.

Borrower-Paid Monthly

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.*