MI Rates Fall for Well Qualified

Some of our MI providers have now instituted risk-based pricing models.  Now your credit score, debt ratio, property type, and location are analyzed together to determine what your MI rate will be.


After running a few sample tests, I’ve noticed that the most well qualified borrowers are getting nice discounts on current MI rates.  But borrowers who are more borderline on qualifying will now be paying higher premiums.


The lesson: it continues to be more important than ever to maintain your credit.  On a sample $300,000 loan, a difference in credit scores of 725 to 745 is a $1,200 difference in upfront MI.



(MI=Mortgage Insurance, a fee that you pay in exchange for putting less than 20% down.  This change is applicable for conventional loans only).