Ability to Cancel
For Most Members, United Guaranty Can Mean
Lower Cost and More Buying Power
The FHA insurance premium could be more than THREE TIMES THE COST of United Guaranty MI over the
life of the loan.
Mortgage insurance from United Guaranty can be cancelled when it's no longer needed; or the servicer will cancel it automatically at 78% LTV,1 or possibly sooner, if the home has appreciated in value.
United Guaranty mortgage insurance remains refundable for certain plans, even NO-REFUND financed premiums, under certain conditions.
Check our Comparison Chart to see the right choice for you and your member.
Total Cost of MI over the Life of the Loan
|United Guaranty Performance Premium®||FHA|
|Member-Paid Monthly||Member-Paid Single Premium||Lender-Paid Single Premium||FHA Financed|
*United Guaranty Performance Premium provides multiple single-premium options to fit each loan's individual characteristics. Premium may be paid by the borrower at closing or by the seller or with gifted funds. Premium may also be eligible for financing as part of the mortgage. Please reference product eligibility requirements for specifics. Premium payments are based on a straight-line amortization schedule.
Assumptions: Base loan amount $200,000, two borrowers, 760 credit score, 41% DTI, 30-year fixed-rate purchase loan, single-family house with 30% coverage, stable market, 97% LTV United Guaranty, and 96.5% LTV FHA. Performance Premium pricing as of April 18, 2016. FHA rate source: FHA Mortgagee Letter 2015-1.
Compare Cancellation and Refund Options
|Automatic Termination||At 78% LTV||Not cancelable for 90.01 to 97% LTV; Cancelable after 11 years for all other loans.|
|Member-Requested Termination||At 80% LTV or possibly sooner2|
|Refundability||Available depending on product3||Available only if refinanced into an FHA loan within the first three years.4|
Isn't it time to ask why you're still using FHA for your members?
- At 78% LTV, automatic cancellation of mortgage insurance by the servicer under the federal Homeowners Protection Act of 1998 ("HPA") is not affected by past late payments or possible declines in property value. The rule simply states that the borrower must be current on mortgage payments—or become current—for cancellation to occur.
- Lender-specific requirements and/or guidelines may be applicable; borrower should contact servicer for more information. See requirements under the Homeowners Protection Act of 1998.
- Terminations under the HPA will result in a refund of unearned premium, if any.
- FHA partial refund available only for FHA refinanced loans.