Home Loans
Private Mortgage Insurance: Cancel It and Save
(presented by www.refinance-refinance.net - mortgage lenders)
By Louie Latour
Did you know that the Homeowners Protection Act of 1998 protects you from the abuses of Private Mortgage Insurance? If you are a homeowner that was required to pay for Private Mortgage Insurance by your lender, here is what you need to know about cancelling your policy and saving yourself a lot of money.
If you are a borrower with poor credit or have less than 20% for your down payment, your mortgage lender may require you to purchase Private Mortgage Insurance (PMI). This insurance protects the mortgage lender from losses if you default on your loan. These insurance policies can be quite expensive; legislation was enacted in 1998 to protect homeowners from mortgage lenders that abused PMI. This legislation set rules to protect homeowners by requiring insurance companies to terminate their policies once the borrowers meet certain criteria. These rules apply to any mortgage taken out after July of 1999 on a single family home. These rules do not cover FHA or VA mortgages or loans where the mortgage lender pays the Private Mortgage Insurance.
The legislation enacted states that Private Mortgage Insurance must automatically stop when a homeowner reaches 22% equity based on the original appraised value of the home. You can request that the PMI terminate when you have 20% equity if you have kept up on your payments. There are exceptions to every rule, and Private Mortgage Insurance is no different. If you have not kept up on your payments you may be required to continue your Private Mortgage Insurance.
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To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of “Mortgage Refinancing: What You Need to Know,” which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free guidebook today at: http://www.refiadvisor.com |
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