PMI Mortgage Insurance Co. is hoping to recover market share it lost to the Federal Housing Administration with the launch of an online calculator that shows how some borrowers would be better off with its private mortgage insurance.
The new calculator was unveiled in an announcement Wednesday by the Walnut Creek, Calif.-based company. It assumes a 6 percent fixed rate with a 30-year amortization and a conforming loan amount.
According to PMI, borrowers with FICO scores above 680 can obtain better pricing with its mortgage insurance. The savings can be even more pronounced with the mortgage insurer’s upfront and monthly premium products that reduce total costs over a 5-year period when compared with FHA.
“We developed this calculator to counter the commonly held but incorrect perception that FHA is always the lowest cost solution,” PMI SVP Product Development and Marketing Jan Walker said in the news release.
PMI customer Janice Shumaker, an executive with Community Bank of Mississippi, was quoted in the statement as saying one of her borrowers saved $5,700 in expenses as a result of using the comparison calculator.
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