Payment of Mortgage Insurance Premiums
Premium plans for mortgage insurance may be:
- monthly plans – monthly premiums from accumulated escrow deposits (with no initial payment at closing),
- annual plans – an initial payment at closing to cover the first year's premium and annual renewal premiums thereafter paid from accumulated escrow deposits,
- single-premium plans – lump-sum premium at closing to purchase life-of-the-mortgage coverage, or
- split-premium plans – an initial payment at closing and an ongoing monthly premium from accumulated escrow deposits.
For additional information, see B7-1-01, Provision of Mortgage Insurance.