The mortgage pipeline could swell by an additional 50,000 loans under a new program that cuts closing costs by eliminating the need for a year's mortgage insurance premium, one lending expert predicts.
The new program being robed out by G.E. Capital Mortgage Insurance Corp. claims to reduce closing costs 9% to 22% while increasing the cost of a monthly mortgage payment by about $3 a month. For example, it said, a borrower who makes a 5% down payment on a $100.000 home usually would have to pay $570 in mortgage insurance premium at closing but only need pay $51 under the G.E. system.