MI Premium Options

Monthly Borrower-Paid MI

The most widely used premium rate program.
Pay as you go — no up-front premium.
May be canceled when sufficient equity level is reached.
How MGIC Monthly MI compares to FHA:

Less MI cost
Increased equity, not loan amount
Lower or comparable monthly payment
Chance to cancel MI sooner

Split Premium MI

An up-front premium is paid at closing by the borrower, or third party, such as a builder or seller. It may also be financed into the loan. This up-front premium helps reduce the borrower's monthly premium as compared to standard Monthly MI.
Choose from a variety of up-front premium levels. The higher the up-front premium, the lower the borrower's monthly MI premium.

Single Premium Borrower-Paid MI

MI premium may be financed into the loan or paid in full at closing by the borrower or third party, such as a builder or seller.
Non-Refundable Option — lower premium rate — No premium is refunded unless coverage is cancelled or terminated under the Homeowners Protection Act of 1998.
Refundable Option — higher premium rate — In addition to the refund provisions of the Homeowners Protection Act of 1998, a portion of the premium may be refunded during the first 5 years when the loan is paid off or coverage is cancelled.

Lender-Paid MI (LPMI)

Origination fee or slightly higher interest rate covers the MI premium.
Tax deductible when included in interest rate.
Depending on investor guidelines, may also be paid by a third party, such as a builder or seller.

Entering the Correct MI Premium Rate

The MI premium rates auto-fill based on the MGIC rate plan that is predominantly active nationwide, applying Fannie Mae and Freddie Mac's coverage requirements. If you are analyzing any nonstandard scenarios, select Enter my own rate. Then enter your specific premium rate factor(s). For help in finding your specific premium rate, follow the links to "MGIC's Rate Finder" or "Rate Cards."