Mortgage Insurance Premium Plans
PMI’s suite of premium plans gives both lenders and borrowers the extra flexibility they need when calculating MI options.
Plans
Super SingleSM
Monthly Premium
pmiNU MONTHLYSM
Level Annual Premium
MI Premium Plans
Super SingleSM
Typically the least expensive structure over the life of a loan, the mortgage insurance premium is a one-time charge that can either be paid in full upfront or financed into the loan so that no cash is required for MI at closing.
- Allocable portion of MI premium is now 100% tax-deductible for borrowers with adjusted gross incomes up to $100,000.*
- Minimizes monthly loan payment.
- If a refund is applicable, any unearned MI premium is refundable following cancellation.
Monthly Premium
Designed to maximize every dollar the borrower spends on a home and minimize closing costs, this plan incorporates the MI premium into the loan payment.
- MI premium is now 100% tax-deductible for borrowers with adjusted gross incomes up to $100,000.*
- Single monthly payment.
- If a refund is applicable, any unearned MI premium is refundable following cancellation.
- pmiNU MONTHLYSM is PMI’s no upfront Monthly Premium option: MI coverage is effective as of the loan closing date; however, the first premium payment is due with the first mortgage payment as opposed to at loan closing.
Level Annual Premium
This plan features equal annual premium payments.
- MI premium is now 100% tax-deductible for borrowers with adjusted gross incomes up to $100,000.*
- Ideal for borrowers who are short on cash at closing.
- Since the premium is paid in advance for each year, the premium rates are slightly lower than with monthly plans.
- If a refund is applicable, any unearned MI premium is refundable on a pro rata basis following cancellation.
* Based on transactions closed in 2007-2010 and borrower-paid MI premiums allocable to those years. Deductions are phased out in 10% increments for borrowers with adjusted gross incomes between $100,000 and $109,000.
PMI cannot provide tax advice. Taxpayers should consult their own tax advisors concerning applicability of this new deduction to their particular circumstances under the Internal Revenue Code and the laws of any other taxing jurisdiction. This information is not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties.
