Payments for mortgage insurance begin with an initial premium that's
collected at closing and, depending on the premium plan chosen, a
monthly amount may be included in the house payment made to the
lender, who remits payment to the mortgage insurer.

• ANNUALS: The borrower pays the first-year premium at closing; an
annual premium is collected monthly as part of the total monthly pmt.

• MONTHLY PREMIUMS: The cost is slightly more than traditional
mortgage insurance plans but monthly premiums dramatically reduce
mortgage insurance closing costs. Borrowers pay for mortgage
insurance monthly as part of their total monthly house payment, but
only need to pay one month's mortgage insurance premium at closing,
rather than one year's.

The three plans above offer a choice of either "Refundable" or "Non-
Refundable" premiums. The difference is ...

• REFUNDABLE PREMIUM: Allows the borrower the opportunity to
receive money back on any used portion, in the event the mortgage
insurance coverage is discontinued before the loan is paid in full.

• NON-REFUNDABLE PREMIUM: The cost for this type of premium
is slightly less than that of a "refundable premium", thereby giving the
borrower a small savings. If coverage is continued on a loan with a
non-refundable premium, the borrower has no opportunity for a refund.