SingleFile
SingleFile is a lender-paid program from MGIC that allows the borrower to avoid taking out two loans or making an MI payment.The lender pays the MI premium for the borrower.
Most lenders will charge a slightly higher interest rate or loan fee when offering this program; however, this is still significantly lower than the interest rate on the second loan in a piggyback structure. And SingleFile still provides a competitive, if not lower, monthly payment when compared to the cost of two loans.
SingleFile provides you:
- One loan - avoid the hassle of closing two loans and carrying two mortgages on one house
- One low monthly payment
- Maximum tax deductibility
- No borrower-paid MI, which means no need to cancel
- No risk of a second mortgage tied to rising interest rates
| SingleFile can be a better alternative to a piggyback loan on a $250,000 home with no money down using a 30-year-fixed rate. | ||
| Piggyback | SingleFile | |
|---|---|---|
| 1st Mortgage Amount | $200,000 | $250,000 |
| 1st Mortgage Interest Rate | 6.75% | 7.25% |
| 2nd Mortgage Amount | $50,000 | — |
| 2nd Mortgage Interest Rate | 9.25% | — |
| Total Amount Borrowed | $250,000 | $250,000 |
| Monthly Payment on 1st Loan | $1297 | $1705 |
| Monthly Payment on 2nd Loan | $411 | — |
| Total Monthly Payment | $1708 | $1705 |
*These numbers are used for example purposes only. Actual loan amounts will vary based on the borrower's credit score and financing approval.
For help finding a lender near you, or for more information about comparing piggybacks to MI options with your loan examples, send an e-mail to Single.File@mgic.com