MI Options

MGIC works with our partner lenders to provide you with several options when it comes to buying your home. Here are a few of our more popular programs.

• MGIC Monthly premiums
  With this option, you would experience no increase in the loan amount and need no additional cash at closing. The premium amount is paid along with your monthly mortgage payment. Your MI coverage can usually be cancelled once your loan amount falls to 75–80% of your home's value.
  
• MGIC Borrower-Paid Singles
  With this premium plan, you have the option of paying the MI premium in one lump sum at closing and making no monthly MI payments. Depending on your lender's guidelines and your individual situation, you may be able to finance the premium into the loan amount, reducing your closing costs. However, many lenders do not allow for financing the premium into the loan, especially if the borrower is not putting at least 10% down, so this option may require you to bring more to closing.
• MGIC Split Premiums
  Here you pay a portion of the MI premium up-front at closing, in order to greatly reduce the amount you pay along with your monthly mortgage payment. The amount paid up-front ranges from 0.75% to 2.00% depending on your lender and how much you prefer to pay. Like Borrower-Paid Singles, you may be able to finance the up-front amount. Again, this will depend on the lender and the amount of your down payment. This premium plan is also cancelable.
• MGIC Lender-Paid MI
  As the name suggests, with MGIC's Lender-Paid MI program your lender pays the MI premium and not you. However, to cover the cost of the premium, your lender may increase the loan fees or the interest rate.

The important thing to remember is that MGIC mortgage insurance gives you options. Buying a home is one of the biggest financial decisions you may ever make. You want to go into that decision knowing all your options.