National MI vs. FHA demo
Not all loans are the same. Are you providing your customer with the best loan options? At National MI, we can offer a wider range of payment options than FHA, including monthly or single premium options, paid by the lender or member. It’s not all about monthly payments, it’s about costs. The true cost of mortgage insurance for a homebuyer with an FHA loan can really add up and may not be their best fit in the long term.
Experience the conventional wisdom that comes with National MI.
Below are examples of the monthly payment differences per $100,000 financed with National MI Conventional vs. FHA.
Lower monthly payments
For those borrowers with good FICO® scores, National MI can still deliver lower monthly payments over an FHA loan.
We also offer a wider range of payment options than FHA, including monthly or single premium options, paid by the lender or borrower.
30Y MORTGAGES:
Conventional with Mortgage Insurance vs FHA Monthly Savings ($) with Signature BPMI Monthly
| CREDIT SCORE | 85% | 90% | 95% | 97% |
|---|---|---|---|---|
| 800+ | $37 | $28 | $19 | $4 |
| 780-799 | $37 | $28 | $19 | $4 |
| 760-779 | $37 | $28 | $19 | $4 |
| 740-759 | $36 | $19 | $4 | $13 |
| 720-739 | $34 | $11 | $8 | $29 |
| 700-719 | $23 | $4 | $27 | $61 |
- FHA-insured loans assume a 4.00% interest rate
- Conventional loans assume a 4.25% base interest rate, plus impact of Loan Level Price Adjustment (LLPA), which very by loan-to-value and credit score
No upfront payment required
With FHA, upfront payment is folded into the loan amount, chipping away at a borrower’s equity.
Cancellable at least 6 years sooner than FHA
Cancellable at least 6 years sooner than FHA
Cancellation Comparisons:
| LTV | National MI | FHA |
|---|---|---|
| > 90% LTV | 78% LTV (Average 7-10 year terms) | Not Cancellable |
| <90% LTV | 78% LTV (Average 5-7 year terms) | Cancellable after 11 years |
Less cash to close
We insure loans with just 3% down, while FHA requires a minimum 3.5% down payment.
The time it takes for a borrower to save the additional funds could delay their getting into a home
It’s not all about monthly payments, it’s about costs
The true cost of mortgage insurance for a borrower with an FHA loan can really add up and may not be their best fit in the long term.
We provide a faster path to closing more loans
- No need for FHA case numbers
- No need for special Direct Endorsement (DE) underwriters
- No need for approved appraisers
- No burdensome extra paperwork or package preparation
- “The 2014 Mortgage Insurance Report,” WalletHub.
- Article: “FHA and the need to strike the right balance for taxpayers,” TheHill.com.
- Doug Holtz-Eakin, President, American Action Forum, CQ Congressional Transcripts, Hearing of the House Financial Services Housing and Insurance Subcommittee, February 26, 2015