The PMI Group Inc.'s principal operating subsidiary, PMI Mortgage Insurance Co., has introduced a new online tool to help lenders compare PMI's insurance pricing versus Federal Housing Administration (FHA) insurance on high-FICO loans.
The PMI/FHA Comparison Calculator enables lenders to enter various loan parameters and calculate pricing and relevant savings using PMI mortgage insurance. These savings can be significant on PMI's up-front and monthly premium products, which reduce total mortgage insurance cost over a five-year period when compared with FHA insurance, the company says.
‘We developed this calculator to counter the commonly held but incorrect perception that FHA is always the lowest-cost solution,’ says Jan Walker, senior vice president of product development and marketing for PMI. ‘On FICO scores above 680, PMI's pricing is better than the FHA and can save borrowers thousands of dollars.’
The new tool, found on www.pmi-us.com/pmi_fha_calculator, enables lenders to price various scenarios by entering loan amounts, credit scores and loan-to-value ratios using drop-down windows. Scenarios assume owner-occupied purchase transactions, 30-year, fully amortizing 6% fixed rate and conforming loan balances, PMI says.
SOURCE: PMI Mortgage Insurance Co.