icon Performance Premium MI Options

United Guaranty's Performance Premium® gives you an MI pricing option that's different from the usual "one-size-fits-all" approach. This unique product considers a comprehensive range of risk attributes to generate an individualized price for each loan, making it the first truly risk-based pricing in the market.

Performance Premium has the power to give you:

Infographic: What Makes Performance Premium Different?

Premium Plan Options: Borrower- and Lender-Paid

Understand your borrowers' options for monthly, single, and split premium plans.

Monthly Premium Option

Option 1:
PostPay®—QMI Product!

Download PostPay Monthly Premium Flyer

No premium is required at closing. Premium payment is deferred until first monthly mortgage payment. Monthly mortgage insurance premiums are included in the monthly mortgage payment. After commitment is activated, United Guaranty will bill for premium due the first of the month following the closing date.

Option 2:
Non-Post Pay

One month's premium is due at closing. The lender may determine how much additional premium is required for escrow. Monthly mortgage insurance premiums are included in the monthly mortgage payment.

Borrower Benefits:

  • Premium may be eligible for an income tax deduction.1
  • No increase in interest rate or loan amount to cover cost of premium.
  • No or minimal up-front cost depending on the premium option.

Refund:

  • Offered as refundable only. Since MI is included in the mortgage payment and may be paid in arrears, there typically is no refund due when coverage is cancelled.

Lender-Paid Monthly—QMI Product!

  • PostPay is eligible, subject to lender program availability and requirements.
  • Non-refundable only. The Homeowners Protection Act of 1998 (HPA)2 does not apply to lender-paid premiums.

Renewals:

  • Level Renewal: The renewal rate is applied to the original loan amount (base loan amount plus financed premium, if applicable).
  • Declining Renewal: Renewal rate is applied to the outstanding loan balance at the time of renewal for the entire term of the loan.
  • Monthly premium renewals are set at the Master Policy level, default to this renewal type, and are consistent for all mortgage insurance issued in association with that Master Policy, including branches. However, the default may change, if required, on a loan-by-loan basis. The majority of United Guaranty's customers select level renewal.

Performance Premium rates are based on the submitting lender's state location. All rates are subject to state approval.

1 For details about potential tax benefits, please go to irs.gov/publications or here.

2 For details on the Homeowners Protection Act (HPA), please click here or visit our Home Buyers page.

Single Premium Option

One-time, up-front MI premium. Entire premium is due at closing.

  • Borrower-Paid Single. The borrower may either pay in cash or finance the premium into the loan amount, subject to lender guidelines. The single premium may be paid partially or in full by the builder, seller, or other interested third party. Single premium plans are available as refundable or non-refundable.
  • Lender-Paid Single. The lender may pay the single premium (LPMI Single), covering the cost of the premium by charging a slightly higher interest rate on the mortgage. Compare our Performance Premium® LPMI single premium rates against other MI providers’ rate cards, and you’ll see we offer competitive pricing for members with a solid credit history.

QM and Single Premiums

With Lender-Paid Single Premiums, there's no borrower MI fee collected at closing, making this option QM-ready. Under QM, the entire borrower-paid non-refundable single premium is included in the calculation of maximum points and fees.

LPMI Singles: Borrower Benefits

  • With Lender-Paid Single Premiums, your borrowers can likely afford up to 5% more home for the same payment.
  • Added mortgage interest payment may be tax deductible.1

Performance Premium rates are based on the submitting lender's state location. All rates are subject to state approval.

Let United Guaranty Help!

United Guaranty can help you with your QM strategy! To understand how United Guaranty helps lenders meet APR/Safe Harbor requirements, see United Guaranty's Qualified Mortgage Insurance—QMISM—Product Summary, which includes a full range of borrower- and lender-paid options.

Note: For details on the cancellation requirements under the Homeowners Protection Act (HPA), please visit fdic.gov/regulations/compliance/ or visit our Home Buyers page.

1United Guaranty does not provide tax advice. Please consult your financial advisor for more information

Split Premium Option

Split Premium—QMI Product

Download the Split Premium – QMI Product Flyer.

This option is a combination of both an up-front MI premium and a subsequent monthly premium.

Borrower Benefit:

  • Premium may be eligible for an income tax deduction.1
  • If the premium is financed, the total mortgage payment, with the subsequent monthly premium, may be lower than a monthly premium payment plan.

Refund:

  • Up-front Premium: Non-refundable.
  • Monthly Premium: Refundable, but because the premium is included in the mortgage payment that is paid in arrears, typically no refund is due.

Renewals:

Level Renewal: The renewal rate is applied to the original loan amount (base loan amount plus financed premium, if applicable).

Split renewals are set at the Master Policy level, default to this renewal type, and are consistent for all mortgage insurance issued in association with that Master Policy, including branches. However, the default may change, if required, on a loan-by-loan basis. The majority of United Guaranty's customers select level renewal.

1 For details about potential tax benefits, please visit irs.gov/publications or click here.

Download our comprehensive Premium Options Chart.


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