The MGIC Loan Comparison Calculator allows you to compare up to three mortgage loan scenarios, including borrower qualification ratios, side-by-side. You can choose which loan scenario to populate the lead information within eMagic. (You must have eDocs or MortgageApp in order to do this.)

Note: Symbols like dollar signs ($), percent signs (%) or commas (,) are considered invalid. Only use numbers to complete fields.

Calculator Locations

There are five ways to reach the MGIC Loan Comparison Calculator:

Main Menu –> Tools tab –> Calculators –> MGIC Loan Comparison
Loan Manager –> Calculators –> MGIC Loan Comparison
Loan Folder –> under Actions Menu –> Calculators –> MGIC Loan Comparison
Edit Lead screen –> Loan Calculators –> MGIC Loan Comparison
Create Lead screen –> Loan Calculators –> MGIC Loan Comparison

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Loan Information

Purpose of Loan: Selecting Purchase or Refinance will impact the MI premium rates that auto-fill in the Comparison Data section.
Purpose of Refinance: Selecting Rate & Term or Other will impact the MI premium rates that auto-fill in the Comparison Data section. Note: Be sure to check investor guidelines to determine whether a loan scenario is eligible for lender approval and MI coverage.

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Property Information

Property Value: Enter the value of the subject property.
Purchase Price: For purchase scenarios, enter the sales price for the subject property. For refinances, just reenter the Property Value.
Occupancy: Select the borrower’s intended use of the subject property.
When does borrower plan to sell or refinance?: Enter the number of years into the future that you want to analyze. In the results section, you will be able to see the anticipated P&I and MI obligations for each scenario at the future moment in time that you specified.
Annual Home Appreciation Rate: Enter the forecasted annual percentage increase in the value of the subject property. If you enter a high appreciation rate, your analysis will show that the borrower will be able to cancel MGIC MI sooner.
Property Tax: Enter the subject property’s monthly or annual property tax obligation.
Hazard Insurance: Enter the subject property’s monthly or annual hazard insurance expense. For condos, this generally should be left blank.
Homeowners Association Dues: If the subject property is part of a homeowners association (generally for condos), enter the monthly or annual association dues.
Other Expense: If there are other fixed obligations associated with ownership of the subject property (a rare circumstance), enter that monthly or annual figure.

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Borrower Data

Fill in this section if you want the calculator to compute debt-to-income ratios for your scenarios.

Total Income: Enter the gross income of all borrowers as a monthly or annual figure.
Current Monthly Housing Expense: For Secondary Residence or Investment Property scenarios, enter the borrowers’ PITI for their primary residence.
Total Monthly Non-Housing Debt: Enter the sum of the borrowers’ minimum required monthly payments on all other debt obligations (credit cards, auto loans, etc.).

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Comparison Data

Mortgage Applied For

Whether you choose Conventional or FHA, the calculator applies a few key rules to ease your data entry process. Note: Be sure to check investor guidelines to determine whether a loan scenario is eligible for lender approval and MI coverage.

Product

Choose the amortization of your first lien. ARMs have 30-year terms.

ARM Only Details

If you select an ARM as your Product, two fields appear near the bottom of the Scenario Comparison Data section. Qualifying Rate is the interest rate used to calculate the DTI ratios. Life Cap represents the maximum increase in interest rate allowed over the life of the loan as compared to the start rate.

Loan Amount

Enter the base loan amount of your first lien, excluding any financed MI premium. Or, you may skip to Down Payment % or $ if that approach is more convenient.

Subordinate Financing

If your scenario will include a second mortgage, click the icon to enter your second mortgage details. If you already know the monthly payment required on the second mortgage, select Enter Monthly Payment for faster entry.

Down Payment (equity)

If the down payment or equity position of the first lien has not been already automatically calculated, enter it in terms of a percentage or dollar figure. If there is a second lien, ignore it. For example, on an 80/10 piggyback, you might expect Down Payment to display as 10%, but, in fact, it will display as 20%.

Interest Rate

Enter the starting interest rate for the first lien.

Interest-Only Term

If your first-lien mortgage program allows interest-only payments, enter the number of months in which interest-only payments will be allowed. Note: Be sure to check investor guidelines to determine whether a loan scenario is eligible for lender approval and MI coverage.

Interest Rate Projection

Estimate how interest rate trends could affect your borrower down the road. If your comparison includes only fixed-rate loan types, this field does not apply. For adjustable-rate loans, the projected interest rate calculation is based on the following assumptions:

First Mortgages

Remain flat — The interest rate will remain the same throughout the life of the loan.
Rise gradually — The interest rate will rise by 1% during the first year after the fixed-rate period; an additional 0.75% during the second year; and another 0.75% during the third year, maintaining that rate during all remaining years.
Rise sharply — The interest rate will rise by 2% during the first year after the fixed-rate period; an additional 2% during the second year; and another 2% during the third year, maintaining that rate during all remaining years.

Second Mortgages

Remain flat — The interest rate will remain the same throughout the life of the loan.
Rise gradually — At the end of the fixed-rate period, the interest rate will reset to the equivalent of a 0.5% increase per year since closing. Twelve months later, the interest rate will rise by an additional 0.5%. Twelve months after that, the interest rate will rise again by 0.5% and maintain this level during all remaining years.
Rise sharply — At the end of the fixed-rate period, the interest rate will reset to the equivalent of a 1% increase per year since closing. Twelve months later, the interest rate will rise by an additional 1%. Twelve months after that, the interest rate will rise again by 1% and maintain this level during all remaining years.

MI Premium Plan

Select one of five mortgage insurance programs for the first lien. Note: Be sure to check investor guidelines to determine whether a loan scenario is eligible for lender approval and MI coverage.

SingleFile (LPMI)

When you select SingleFile (LPMI), there is no premium rate to enter because the premium is typically covered by an origination fee or a slightly higher interest rate.

Monthly MI

When you select Monthly MI, you have three rate options:

Apply standard, full-doc MI premium rates is the default selection. The premium rate autofills based on MGIC’s national rates at standard Agency coverage levels for 1-unit retail transactions under a top-tier credit assumption.
When you select the Apply MCM® and Home Possible® (charter level) MI premium rates radio button, premium rates autofill at charter level coverage under the same assumptions as above.
If you are analyzing any nonstandard or refinance scenarios, select Enter my own rate. Then enter your specific premium rate factor in the Monthly MI Premium Rate field.

One-Time MI

When you select One-Time MI, you have three Upfront MI Premium Rate options:

Apply standard, full-doc MI premium rates is the default selection. The premium rate autofills based on MGIC’s national rates at standard Agency coverage levels for 1-unit retail transactions under a top-tier credit assumption.
When you select the Apply MCM and Home Possible (charter level) MI premium rates radio button, premium rates autofill at charter level coverage under the same assumptions as above.
If you are analyzing any nonstandard or refinance scenarios, select Enter my own rate. Then enter your specific premium rate factor in the Upfront MI Premium Rate field.

You may also select one of two ways to reduce the total loan amount:

Select Upfront Premium Paid at Closing and enter the dollar amount that will be paid toward the upfront MI premium. Entering a value here will reduce or eliminate the amount of premium that would otherwise be financed into the loan.
OR select Points and enter this value as a percentage of the loan amount.

Please note: Many loan programs allow third-party closing cost credits. This means the up-front MI premium could be paid by a third party, such as a seller or builder, rather than by the borrower.

Split MI

In the Split Premium Plan drop-down menu, select one of four upfront premium rates, expressed as a percentage of the loan amount, or Other. Selecting 1.00, 1.25, 1.50 or 1.75 determines and autofills the Monthly MI Premium Rate field for you. If you select Other, you can manually enter an Upfront MI Premium Rate and a Monthly MI Premium Rate.

Then select one of the three Monthly Premium Rate options:

Apply standard, full-doc MI premium rates is the default selection. The premium rate autofills based on MGIC’s national rates at standard Agency coverage levels for 1-unit retail transactions under a top-tier credit assumption.
When you select the Apply MCM and Home Possible (charter level) MI premium rates radio button, premium rates autofill at charter level coverage under the same assumptions as above.
If you are analyzing any nonstandard or refinance scenarios, select Enter my own rate. Then enter your specific premium rate factor in the Monthly MI Premium Rate field.

You may also select one of two ways to reduce the total loan amount:

Select Upfront Premium Paid at Closing and enter the dollar amount that will be paid toward the upfront MI premium. Entering a value here will reduce or eliminate the amount of premium that would otherwise be financed into the loan.
OR select Points and enter this value as a percentage of the loan amount.

Please note: Many loan programs allow third-party closing cost credits. This means the upfront MI premium could be paid by a third party, such as a seller or builder, rather than by the borrower.

FHA

When you select FHA, the Upfront and Monthly MI Premium Rate fields autofill based on the LTV and Product you selected. FHA MIP rates in this calculator assume FHA’s 203(b) program.

You may also select one of two ways to reduce the total loan amount:

Select Upfront Premium Paid at Closing, and enter the dollar amount that will be paid toward the upfront MIP. Entering a value here will reduce or eliminate the amount of premium that would otherwise be financed into the loan.
OR select Points and enter this value as a percentage of the loan amount.

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Eligibility Settings

Under certain circumstances, where values entered in the calculator are outside of standard MGIC or FHA retail program guidelines, you will receive a warning message stating so, and the MI Premium Rate field will fill as undefined.

For scenarios using MGIC Premium programs

SingleFile (LPMI), Monthly MI, One-Time MI or Split MI — these loan criteria will trigger the warning message:

Base LTV greater than 97% when Purpose of Loan is Purchase
Base LTV greater than 95% when Purpose of Refinance is Rate & Term
Purpose of Refinance is Other
3/1 ARM or 1/1 ARM with Base LTV greater than 95%
Secondary Residence Purchase with LTV greater than 90%
Secondary Residence Refinance or Investment Property with LTV greater than 80%

For Monthly MI, One-Time MI or Split MI

You can enter a premium rate manually to create a customized comparison.

For FHA scenarios

These loan criteria will trigger the warning message:

Base LTV greater than 96.5% when Purpose of Loan is Purchase
Base LTV greater than 97.75% when Purpose of Refinance is Rate & Term
Base LTV greater than 85% when Purpose of Refinance is Other
Secondary Residence or Investment Property

For these circumstances, you can enter a premium rate manually to create a customized comparison.

The MGIC Loan Comparison Calculator is not an underwriting tool. Only a few key eligibility rules are programmed into the calculator. Check investor guidelines to determine whether a loan scenario is eligible for lender approval and MI coverage.

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Results

Calculator Results

Clicking "Calculate" displays the results of the comparison. Choose a scenario to highlight in the report. You have the option of viewing and including the amortization schedule for the selected scenario in the PDF report. Up to eight lines of text can be displayed in the calculator’s Notes field. These notes appear in the PDF report and can be used to share important information about the calculator results or your contact information.

Use the icons on the PDF tool bar to save, print or e-mail the report.
The PDF report can be saved to your computer and then uploaded to your Trio folder.
Here's a sample of the MGIC Loan Comparison Report.

These saved data fields from the calculator can populate the loan and lead file:

Purpose of Loan
Purpose of Refinance
Product
Occupancy
Subordinate Financing
Loan Amount
Down Payment ($)

Rate
Interest Only # Mos
Qualifying Rate
Life Cap
Real Estate Taxes
Closing Costs

Explanation of Results
Initial Monthly Payment

This breakout shows the total initial housing expense for each scenario.

Loan Qualification

This section makes it easy to check your LTV and DTI for each scenario.

___ Years from Now

This data table illustrates the borrower’s monthly housing payment at a specified time in the future. You can see how different Products and Interest Rate Projections affect Principal and Interest payments. Changes in the MGIC MI premium may be a result of your estimated Annual Home Appreciation Rate. (For details, see MI End Month under Life of Loan.)

Note: Even though Property Tax, Hazard Insurance and Homeowners Association Dues may change, the entered values are held constant in this calculator and included in the Total Monthly Payment.

Life of Loan

This section synopsizes the amortization schedule for each scenario. To examine the amortization details further for a particular scenario, select ‘Yes’ for View amortization schedule for selected loan? The month-by-month details will be visible below and appended to the PDF report. (Click View Report to generate the PDF.)
For all MGIC MI programs except for SingleFile (LPMI), the calculator applies the following rules to forecast the MI End Month:
- Between the 25th and 60th month, as soon as the balance reaches 75% of the reappraised value
- Anytime after the 60th month, as soon as the balance reaches 80% of the reappraised value
Your estimated Annual Home Appreciation Rate will impact the MI End Month in MGIC MI scenarios because of the possibility of reappraisal. In the case of FHA, where reappraisal is not honored, the Monthly MIP cancellation date is based on the loan term:
- For loan terms greater than 15 years, MIP is cancellable after 5 years have passed, as soon as the balance reaches 78% of the home’s original value.
- For loan terms less than 15 years, MIP is cancellable as soon as the balance reaches 78% of the home’s original value.

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MCM is a registered trademark of Fannie Mae.
Home Possible is a registered trademark of Freddie Mac.