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CMG Single Premium Plan
An easier and better alternative to "piggyback" loans (a combination of a first and second mortgage)
Typically the least expensive structure over the life of the loan, Single Premium is a one-time charge that can either be paid up front or financed into the loan amount, so no cash is needed at closing. And with the CMG Single Premium Plan, there is just one loan to close. That means less paperwork, less hassle and fewer conditions to clear.
CMG Single Premium easily allows your Credit Union to manage the entire transaction. No separate MI approval is needed if CMG MI has approved you for delegated underwriting of the MI decision, or if the loan is contract underwritten by us. Compare that to the complexity of closing two loans!
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Plus, on February 8, 2008, pending state approval, CMG MI launched new, non-refundable rates for Single Premium, giving customers an alternative to our existing refundable rates. Click here to see rates for Single Premium.
The 95.01% LTV and above category for Single Premium is now divided in the following 2 categories:
- 97.01% LTV and above
- 95.01% LTV to 97.00% LTV
This charge allows CMG MI to provide pricing appropriate to the risk characteristics of these two categories.
CMG MI also adopted a new 5-year refund schedule, to match evolving industry standards. Click here to see our schedule.
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Single Premium Benefits for Credit Unions include:
- Just one loan to close - less hassle
- One lower monthly payment possible for the Member
- No cash up-front needed at closing with financed Single Premium
- Refund of unearned premium available
- Limits exposure through life of loan coverage
- Up to 100% LTV for standard rates, 97% LTV for A-Minus rates on financed Single Premium
- MI Premium is now 100% tax-deductible for Members with adjusted gross incomes up to $100,000 through 2010 - and the interest on the portion of the loan amount used to finance the MI premium may be tax-deductible too!*
And since the second lien position is available, there may be room for future cross-selling of your Credit Union's products.
*Borrowers/Members are advised to consult their tax advisor.
Back to Premium Plans and Products
For more information, contact your CMG MI Account Executive, or call CMG Mortgage Insurance Company at (800) 909-4264. |