Radian Guaranty Inc, Philadelphia, has introduced SplitEdge, a product that lets homebuilders reduce a homebuyer's monthly mortgage insurance payment.Homebuyers with less than a 20% downpayment typically purchase mortgage insurance in monthly installments in order to secure a mortgage loan. With SplitEdge, homebuilders can offer a one-time, refundable upfront MI payment -- which can be 0.75%, 1.00%, or 1.25% of the mortgage loan -- that significantly lowers monthly MI installments, Radian said. "For homebuyers, this creative mortgage insurance product eliminates the potential risk of balloon payments associated with other mortgage loan options such as 80-10-10s and 80-20s, known as piggyback loans," said Doug Rossbach, Radian's senior vice president for strategic initiatives. "We're also helping borrowers save money on the interest paid over the life of a piggyback." SplitEdge is designed for homebuyers who are buying new construction, have a zero to low downpayment, have average or above-average credit, and are looking for ways to lower their monthly payments, the company said. Radian can be found online at http://www.radian.biz.
