Tool Compares FHA's Coverage to MI's

PMI Mortgage Insurance Co., Walnut Creek, Calif., has created an online tool to help lenders see the pricing advantages of the company's private mortgage insurance products when compared with Federal Housing Administration insurance on loans with high credit scores. "We developed this calculator to counter the commonly held but incorrect perception that FHA is always the lowest cost solution," said Jan Walker, senior vice president of product development and marketing for PMI. "On FICO scores above 680, PMI's pricing is better than the FHA and can save borrowers thousands of dollars." Lenders are able to price various scenarios by entering loan amounts, credit scores and loan-to-value ratios using simple dropdown windows. Scenarios assume owner-occupied purchase transactions, 30-year, fully amortizing 6% fixed rate, and conforming loan balances. The tool can be found on the company's website at http://www.pmi-us.com/pmi_fha_calculator.