What should be the term of the MI coverage on the new loan?
The MI coverage should extend for the life of the new loan, or until cancellation or termination of coverage as required by law or Fannie Mae guidelines, whether the MI company modifies the existing MI certificate or issues a new one. So, for example, even if a 15-year loan that is three years old is refinanced into a 30-year loan, the MI coverage should be extended for the full life of the new loan.
Related Questions
- Why does DU require the lender to confirm that the MI coverage that is in effect on the existing loan is accurate, as shown on the DU Underwriting Findings?
- What amount of MI coverage is required on DU Refi Plus loan casefiles with an LTV greater than 80 percent?
- How does the MI coverage fit into the loan?
