PMI Launches Online Calculator to Compare Pricing with FHA Demonstrates Borrower Savings on Higher FICO Loans Using PMI
WALNUT CREEK, Calif., April 14 /PRNewswire-FirstCall/ -- The PMI Group, Inc.'s (NYSE: PMI) principal operating subsidiary, PMI Mortgage Insurance Co. (MIC), today announced a new online tool to help lenders see the pricing advantages of PMI versus Federal Housing Administration (FHA) insurance on high FICO loans. The PMI/FHA Comparison Calculator enables lenders to enter various loan parameters and quickly calculate pricing and relevant savings using PMI mortgage insurance. These savings can be significant on PMI's upfront and monthly premium products, which reduce total mortgage insurance cost over a 5-year period when compared with FHA insurance.
"We developed this calculator to counter the commonly held but incorrect perception that FHA is always the lowest cost solution," said Jan Walker, SVP 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."
Janice Shumaker, SVP at the Community Bank of Mississippi in Jackson was an early user of the calculator and found the results enlightening. "We recently used the PMI/FHA calculator to review a couple of loan files that could have gone either Conventional or FHA," she said. "One of the files would have had the borrower paying an additional $5,700 in expenses with the FHA loan."
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 LTVs using simple drop-down windows. Scenarios assume owner-occupied purchase transactions, 30-year, fully amortizing 6% fixed rate, and conforming loan balances.
About PMI Mortgage Insurance Co.
PMI Mortgage Insurance Co. (NYSE: PMI) is headquartered in Walnut Creek, CA and provides credit enhancement solutions that expand homeownership while supporting our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products. For more information: www.pmi-us.com.
SOURCE The PMI Group, Inc.