Private PMIs Trend toward Limiting Max LTVs

Effective March 21, 2008, private PMI companies will limit rate and term loans to a maximum loan-to-value ratio (LTV) of 95%. Allowances will be made for streamlined refinances with a maximum LTV/CLTV of 100% when: RMIC is the insurer of the existing mortgage, the property is a single unit primary residence, there is no increase in the LTV category, the P&I payment on the new loan is equal or less to that of the existing loan, and disbursement of cash to the borrower or other payees does not exceed $2,000 or 2% of the loan amount. As FHA rates remain at the more promising 97.75%, mortgage professionals will find it in their interest to stay well versed in FHA guidelines and eligibility requirements that will become of use when offering the best rates to buyers.
To view the additional changes in eligibility in detail, please visit www.rmic.com