Free After Five®
Automatic MI Payment Termination After Five Years
With Free After Five, borrowers receive automatic termination of their MI premium after
five years, provided they have maintained a good payment history. To qualify for Free After Five, borrowers must have a minimum FICO of 660.
This innovative product allows lenders to close more loans by offering borrowers a new
way to purchase a home sooner. Through slightly increased monthly payments, borrowers can purchase homes
with less than 20% down. The monthly MI premiums automatically cancel after five years, however, coverage
continues until the borrower reaches 78% LTV.
By offering Free After Five to borrowers, lenders can:
- Receive continued coverage, therefore less risky than piggyback loans
- Expect borrowers to make timely payments
- Enjoy added convenience - less paperwork than piggyback loans
- Utilize the product as a retention vehicle - borrowers may be less likely to
refinance due to the lower monthly mortgage payments after five years
- Offer a simple cancellation procedure - when the term is up, lender is
automatically notified 60 days in advance
How does Free After Five compare to other types of MI or piggyback loans?
View the comparison chart or calculate Free After Five vs. other payment options.
More questions? Contact our MI professionals.
View Free After Five rates and guidelines.
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