Just a day after the Federal Housing Administration announced plans to cut mortgage insurance premiums on refinance transactions, United Guaranty Corp. said it will also cut premiums.
FHA said Tuesday that up-front mortgage insurance premiums on qualified streamlined refinances will be reduction to 0.01 percent. In addition, the annual mortgage insurance premium is being reduced to 0.55 percent.
On Wednesday, United Guaranty issued a bulletin indicating that it is lowering borrower-paid monthly premiums for many borrowers with high credit scores. The change impacts its Performance Premium risk-based pricing product.
The reduction in costs applies to mortgage insurance applications and rate-quote requests received after March 11.
The updated premiums are subject to state approval.