Sample Mortgage Insurance Premiums
Typical Monthly Private Mortgage Insurance Premiums, Revised September
12, 2005
ARMs that have 5 years or more of level payments are considered FRMs. ARMs 1 are those with rate adjustment caps of 1% or less. All other ARMs are ARMs2. ARMs2 that allow negative amortization may have higher premiums.
The premiums are for coverage required by Fannie Mae and Freddie Mac. No refunds are available. The premium rates are applied to the original loan balance, and hold for 10 years, after which they fall uniformly to .20% of the original loan balance unless they were already less than .20%, in which case they remain unchanged.
Premiums are annual rates paid monthly. To obtain the monthly premium in dollars, multiply the figure shown in the table by the loan balance and divide by 1200. If the premium rate is .92 and the loan is for $100,000, for example, the monthly premium is $92000 divided by 1200, or $76.67.
Under Federal law, premiums are automatically terminated when the loan balance falls to 78% of the original property value, and may be terminated earlier at the borrower's initiative when the balance reaches 80% of appreciated value.
Notes: In recent years, insurers have been pricing loans they would have rejected earlier, with the result that premiums cover a much wider range. They are higher on investment and vacation properties, manufactured houses, and cash-out refinances. In addition, with down payments of less than 3%, premiums may vary with credit score.
| Down Payment as Percent of the Lower of Sale Price or Appraised Value | ||||
| 0 to 4.99% | 5 to 9.99% | 10 to 14.99% | 15 to 19.99% | |
| FRMs | ||||
| 30-40 Years | .96 | .78 | .52 | .32 |
| 25 Years | .85 | .67 | .41 | .21 |
| 20 Years | .80 | .56 | .23 | .19 |
| 15 Years | .80 | .56 | .23 | .19 |
| ARMs 1 | ||||
| 30 Years | 1.17 | .88 | .61 | .33 |
| 25 Years | 1.06 | .77 | .50 | .22 |
| 20 Years | 1.06 | .77 | .50 | .22 |
| 15 Years | 1.06 | .77 | .50 | .22 |
| ARMs2 | ||||
| 30 Years | 1.21 | .92 | .65 | .37 |
| 25 Years | 1.10 | .81 | .54 | .26 |
| 20 Years | 1.10 | .81 | .54 | .26 |
| 15 Years | 1.10 | .81 | .54 | .26 |
ARMs that have 5 years or more of level payments are considered FRMs. ARMs 1 are those with rate adjustment caps of 1% or less. All other ARMs are ARMs2. ARMs2 that allow negative amortization may have higher premiums.
The premiums are for coverage required by Fannie Mae and Freddie Mac. No refunds are available. The premium rates are applied to the original loan balance, and hold for 10 years, after which they fall uniformly to .20% of the original loan balance unless they were already less than .20%, in which case they remain unchanged.
Premiums are annual rates paid monthly. To obtain the monthly premium in dollars, multiply the figure shown in the table by the loan balance and divide by 1200. If the premium rate is .92 and the loan is for $100,000, for example, the monthly premium is $92000 divided by 1200, or $76.67.
Under Federal law, premiums are automatically terminated when the loan balance falls to 78% of the original property value, and may be terminated earlier at the borrower's initiative when the balance reaches 80% of appreciated value.
Notes: In recent years, insurers have been pricing loans they would have rejected earlier, with the result that premiums cover a much wider range. They are higher on investment and vacation properties, manufactured houses, and cash-out refinances. In addition, with down payments of less than 3%, premiums may vary with credit score.