There are several different types of mortgage insurance (MI) available. Which product is best depends on your individual situation. Ask your lender how these plans might work for you:
Monthly or Zero Monthly
This payment option uses a coverage term of one month. Premiums are remitted monthly as part of your mortgage payment. When you are able to cancel your MI, your mortgage payment will decrease by the amount of the premium.
Single Premium
This payment option consists of a single premium, usually financed into with your mortgage. Because the mortgage is amortized over a long period of time, this usually results in a lower monthly payment. If you cancel your Mortgage Insurance before the coverage period ends, you may receive a cash refund.
Lender Paid or "No MI"
Some lenders advertise low down payment loans with "No MI". Usually, these loans DO carry MI--it’s simply paid by the lender. The lender covers the Mortgage Insurance premium through an increase in the interest rate on the loan. These policies usually carry no refund potential, and cannot be cancelled by the borrower.
HomeOpeners offers low fixed monthly costs without the extra fees or paperwork of combo loans. You get the protection your lender requires, with an added benefit for you--the security of payment protection in the event of involuntary unemployment.
