What is the difference between Amortized and Constant Renewals for Mortgage Insurance?
For Amortized Renewals, the Annual or Monthly rate is applied to the outstanding loan balance from coverage inception date through term. For Constant Renewals, the Annual or Monthly rate is applied to the ORIGINAL loan balance from policy inception date through year 10. The constant renewal rate for years 11 through term is the lower of the original premium rate or 17 basis points (0.17%).