Changes being made to mortgage insurance premiums at MGIC will result in lower costs for some borrowers and greater choices for others.
On transactions with non-refundable borrower-paid single premiums and split premiums, the number of FICO score categories is being increased to eight.
The Milwaukee-based mortgage insurance company said that it is also establishing M.I. rates for loans that don’t exceed 20-year terms.
The updates were presented Thursday in
MGIC Bulletin 05-2017.
In addition, MGIC said it is eliminating the adjustment for rate-term refinances, while no loan amount adjustments will be required on mortgages that don’t exceed $650,000.
On borrower-paid single premiums, there will no longer be an adjustment for terms equal to or less than 25 years.
MGIC said the changes are effective on M.I. applications it receives on or after Sept. 5, subject to regulatory approval.