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About Mortgage Insurance
Why Mortgage Insurance

Why Mortgage Insurance

For the Borrower, private mortgage insurance can provide:

  • Access to the housing market more quickly, by reducing the required down payment
  • Range of payment options
  • Cancellation of Borrower-Paid MI (unlike FHA insurance)

For the Lender, private mortgage insurance can provide:

  • Broader range of loan products
  • Expanded pool of buyers with lower cash requirements
  • Wide range of insurance products
  • Faster, easier closes
  • Reduced exposure

Reduces Exposure To:

MI COVERAGE LOAN TO VALUE (LTV)
85% 90% 95% 97%
6% 79.9% 84.6% 89.3% 91.2%
12 74.8 79.2 83.6 85.4
16 71.4 75.6 79.8 81.5
17 70.6 74.7 78.9 80.5
18 69.7 73.8 77.9 79.5
25 63.8 67.5 71.3 72.8
30 59.5 63.0 66.5 67.9
35 55.3 58.5 61.8 63.1
The ability to originate loans for borrowers with less than a 20% down payment is critical to serving first-time homebuyers and expanding the opportunity of homeownership.
With affordable home prices and low interest rates, this is a great time for buyers to enter the market. Private mortgage insurance allows buyers to purchase homes sooner while providing safer loans for lenders.
To learn more about the benefits of mortgage insurance, watch our MI fundamentals videos:
vidyard
Mortgage Insurance (MI) Fundamentals .mp4 | 0:1:48
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4 Common Mistakes Borrowers Should Avoid .mp4 | 0:2:35