What is "Split M.I.?"

All loans above a 80% Loan to Value have some kind of Mortgage Insurance. FHA loans charge 1% up front, and then 0.9% each year ($200,000 loan would be $1,800 or $150 per month). The only wait to avoide this with FHA is to put down at least 10% and do a 15 year loan, then you’d save the $150 per month but still be charged up front.

Conventional Loans have more options: Monthly / Split / All Up Front (a.k.a. Single Premium)

Let’s say a borrower is purchasing a home for $250,000 and they can put down 5% and has a 680 credit score and DU requirement of 30% Coverage. They have 3 different options for Mortgage Insurance:



As you can see borrowers have many choices when it comes to Mortgage Insurance options. As trusted mortgage professionals, Ben and I can help navegate them through the confusing options to help them find the best solution at the lowest cost.