Radian Guaranty: Ensuring the American Dream with MI · Smart Alternative to FHA – Lower Monthly...
Transcript of Radian Guaranty: Ensuring the American Dream with MI · Smart Alternative to FHA – Lower Monthly...
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Radian Guaranty:
Ensuring the American Dream with MI MJ Watkins
September 2015
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Objective
Position Mortgage Insurance (MI)
as a resource by helping you
understand how to leverage MI to:
Expand homeownership to
MORE families
Save your homebuyers MORE
money
Increase the purchasing power
of your homebuyers
Help homebuyers achieve
homeownership quicker with
lower down payments
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Did You Know? Years to Save a Down Payment
Source: USMI
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Did You Know? Need for Private Mortgage Insurance
Source: USMI
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Did You Know? MI Makes Homeownership a Reality
5
Source: USMI
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Did You Know? Private MIs Paid > $45 Billion in Claims
Source: USMI
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FHA and Mortgage Insurance Share of the Purchase
Origination Market
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Facts about Conventional Loans with MI
MI is available for use on a wide variety of loan products
Ask your Lender Partners about conventional loans with Radian MI
You owe it to your Home Buyers
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Trivia Question
MORTGAGE INSURANCE (MI) HELPS
A. Facilitate low down-payment lending
B. Makes loans less risky
C. Reduce taxpayers’ exposure
D. A & B only
E. All of the above
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Smart Alternative to FHA
Providing lower monthly payments
Saving thousands ($$$$) over the life of the loan
Affording “more home” for the same monthly
payment
Providing more purchasing power for their future
home.
Providing option of cancelling MI once 80% LTV is
achieved
Either private mortgage insurance (MI) or an FHA-insured loan can help your clients
buy a home for less than 20% down. Comparing the cost of private MI and FHA, MI
can be a better option for your clients by…
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3% downpayments back again + affordable property values + historically
low rates = the perfect market conditions to attract first-time homebuyers!
Plus – under One Underwrite®, loans are eligible for Radian MI with DU
Approval/Eligible or LP Accept/Eligible* and a minimum 620 FICO.
*Available upon Freddie Mac release.
Return of 97% Financing
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MortgageAssure™ Program
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Smart Alternative to FHA – Lower Monthly Payments
FHA MI Monthly
Sale Price $250,000.00
Base Loan $237,500.00
Upfront Premium Rate 1.75% -----
Upfront Payment $4,156 -----
Gross Loan $241,656 $237,500.00
Note Rate 3.75% 4.00%
P&I Payment $1,120 $1,134
MI Rate .80% .62%
MI Payment $158 $123
Total Monthly Payment $1277 $1257
Monthly savings of $20 & yearly savings of $240!
Assumes: 30 year amortization, 1 unit, 720 FICO, Purchase
Reflects FHA Rates Effective January 2015 and Radian MI Pricing as of July 2014
Radian’s MI Monthly vs. FHA on 95% LTV
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Smart Alternative to FHA – Lower Monthly Payments
FHA MI Monthly
Sale Price $250,000.00
Base Loan $237,500.00
Upfront Premium Rate 1.75% -----
Upfront Payment $4,156 -----
Gross Loan $241,656 $237,500.00
Note Rate 3.75% 4.00%
P&I Payment $1,120 $1,134
MI Rate .80% .40%
MI Payment $158 $79
Total Monthly Payment $1,277 $1,213
Monthly savings of $64 & yearly savings of $768!
Assumes: 30 year amortization, 1 unit, 720 FICO, Purchase
Reflects FHA Rates Effective January 2015 and Radian MI Pricing as of July 2014
Radian’s MI Monthly, Split Edge ®vs. FHA on a 95% LTV
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Smart Alternative to FHA – More House for the Money
FHA BPMI Monthly
Sale Price $245,992.00 $250,000.00
Base Loan $233,692.00 $237,500.00
Upfront Premium Rate 1.75% -----
Upfront Payment $4,090.00 -----
Gross Loan $237,782.00 $237,500.00
Note Rate 3.75% 4.00%
P&I Payment $1,102.00 $1,134.00
MI Rate .80% .62%
MI Payment $155.00 $123.00
Total Monthly Payment $1257.00 $1257.00
More home for the same monthly payment - $4,008 more home!
Assumes: 30 year amortization, 1 unit, 720 FICO, Purchase
Reflects FHA Rates Effective January 2015 and Radian MI Pricing as of July 2014
Radian’s MI Monthly vs. FHA on 95% LTV
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How Can you Calculate the Best Choice?
By using Radian’s online MI tools.
Rate Finder
Calculates MI Rates
Loan Amount Estimator
Radian Decision®
Calculates payment comparisons
Self Employed Income Analysis Calculator
It is important to know what MI product will work best for your buyers.
www.radian.biz
Radian Resources – Website, Calculators & Tools
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App users can simply input loan criteria and the app automatically calculates the MI rate for a
variety of Radian products. Backed by the company’s published rates and guidelines, Radian
Rates was designed for users to check eligibility and compare options to find the product that
best fits their needs.
Radian Rates is a mobile version of the company’s existing online rate finder and
offers on-the-go access for a quick and reliable Radian MI rate.
1st in the Industry!
Radian Resources – MI Rate App
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Trivia Question
FINANCING WITH MORTGAGE INSURANCE (MI)
CAN OFFER
A. Lower monthly payments
B. Greater purchasing power
C. More options for your clients
D. All of the above
E. None of the above
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Call to Action
Discuss the benefits of mortgage insurance compared
to FHA with your clients
Ensure your lending partners review all financing
scenarios with your clients
Ask your lending partners specifically for private MI
from Radian
Connect with MJ Watkins or your local Radian Rep
for any questions regarding mortgage insurance (MI)
Remember…The more we learn, the more we earn!
Download the Radian MI Rate App and get
comfortable with the tool
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Like us on Facebook at www.facebook.com/radianguaranty
&
Follow us on Twitter - @RadianMI
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Radian Partner Contact Information
MJ Watkins
Multicultural Business Manager
African-American & Asian Segments
980.213.9974 cell
215.231.1730 office
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