National MI Loan Limit Locator
Conventional vs. FHA
Experience the conventional wisdom that comes with National MI. Below are examples of the monthly payment differences per $100,000 financed with National MI Conventional vs. FHA.
Lower monthly payments
For those borrowers with good FICO® scores, National MI can still deliver lower monthly payments over an FHA loan.
We also offer a wider range of payment options than FHA, including monthly or single premium options, paid by the lender or borrower.
30 YR MORTGAGES:
Conventional with Mortgage Insurance vs FHA Monthly Savings ($) with Monthly Advantage BPMI
LTV | ||||
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 |
National MI
FHA
Monthly Saving per $100k Financed
Assumptions:
- FHA-insured loans assume 4.00% interest rate.
- Conventional loans assume 4.25% base interest rate plus impact of Loan Level Price Adjustment (LLPA), which vary 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
Cancellation Comparisons:
LTV | National MI | FHA |
---|---|---|
> 90% LTV | 78% LTV (average 7-10 year term) | Not cancellable |
≤ 90% LTV | 78% LTV (average 5-7 year term) | Cancellable after 11 years |
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.
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 home ownership.
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.