IN BRIEF: GE, MGIC to Cut Rates on Refinanced Loans

GE Capital Mortgage Insurance Co. and Mortgage Guaranty Insurance Corp. are both cutting their premiums for refinancings and offering to insure loans with no down payments.

Since October, Milwaukee-based MGIC has reduced premiums 5 basis points for refinanced loans. "It's a recognition of what the refi loan represents - a borrower with a proven track record," said a company spokesman.

GE Capital's Raleigh, N.C.-based mortgage insurance unit announced plans to do the same Wednesday.

In the no-down-payment programs, the lender or a housing authority pledges 3.1% of the value of the home as extra collateral. The lender then makes a 100% loan-to-value loan, and MGIC insures 100% of that-or 97% of the total collateral.

-Marc Hochstein

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