New monthly pricing announced by Radian Guaranty Inc. means that borrowers with better credit scores will have lower rates on mortgages with little equity.
The new monthly mortgage insurance rates apply to fixed-rate home loans with loan-to-value ratios between 95.01 percent and 97.00 percent.
On mortgages with FICO scores that range between 680 and 719, the monthly premiums will be increased at least 10 basis points.
The new pricing was outlined in Radian eBulletin 2013-1.
Borrowers whose credit scores fall between 720 and 759 will see their monthly rates cut by 4 BPS. However, there won’t be any discount on loans with 35 percent coverage.
On loans to borrowers whose FICO scores are at least 760, the rates will be reduced by at least 5 BPS.
“In addition, our rates for non-fixed BPMI loans will increase across the board, and we are making some minor clarifications to our underwriting guidelines,” the bulletin stated.
The new rates are effective on mortgage insurance applications that Radian receives on or after May 17.
Rate cards for the Philadelphia-based company are located online at www.radian.biz/page?name=RatesAndGuidelinesNew.
