PMI Mortgage Insurance Co., Walnut Creek, Calif., has introduced a new product, Premium Advantage, that will enable borrowers to finance their mortgage insurance premiums on up to a 100% loan-to-value basis.PMI said Fannie Mae has agreed to structure transactions on deals that use the new rate plan, and it described the joint announcements as part of a PMI and Fannie Mae alliance called "Gateway to Homeownership in a New Century." Taia Lockhart, vice president of emerging markets at PMI Mortgage Insurance, said Premium Advantage will help borrowers reduce monthly payments and will aid PMI's customers by enabling them to qualify more first-time homebuyers. The new plan will be made available through Fannie Mae's Desktop Underwriter for transactions up to 100% LTV, including the base loan amount plus the financed portion of the mortgage insurance premium.

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