Definition
Single-premium MI is mortgage insurance paid as one upfront lump sum, financed into the loan. It reduces monthly payments but increases total interest.
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Single-premium MI means one upfront payment instead of ongoing monthly payments. Reduces monthly payment but increases loan amount and total interest paid.
Pro Tip
Single-premium MI is effective for short-term ownership. Conventional PMI better long-term.
Example
Single-premium MI of $12,000 financed into $320,000 mortgage, increasing total to $332,000.