|
Find Out How YOU Can Save Money
By Lowering Your Mortgage Payment!
PMI (Private Mortgage Insurance)
What NOBODY Tells You.
What is PMI Insurance?
Private Mortgage Insurance or PMI as it is more commonly known, is a mandatory
insurance policy that is added to some borrowers monthly mortgage payments. This policy is
in the event that the borrowers were to default on the loan. This
protects the investors and or mortgage lenders on their investment so that the remainder
on the mortgage note would be covered and the loan would be paid in full. This is not to
say however, that the borrower will be forgiven for defaulting.
Who Is
Required To Have PMI Insurance?
Most new homeowners have to pay this added monthly cost. This is because any
borrower who put less than 20% down (in some few cases more (check your loan documents) on
their home when they purchased it or any borrower who has less than 20% equity in their
home probably is still paying the private mortgage insurance policy.
How Would This Affect
Me?
Few homeowners realize over the years, that as they pay down their mortgage,
generally appreciation in the property increases. The two in concert together create a
larger equity jump than someone may anticipate. With this being the case, many homeowners
will pay this premium well beyond the time frame needed. This leads to an unnecessary
monthly expense that is expensive and unwarranted.
How
Do I Find Out Whether Or Not I Have PMI Insurance?
Your monthly statement should indicate your payment. If not, you need to contact
your lender to see whether or not your PMI payment may be hidden in the escrow account of
your loan. (From personal experiences in the real estate industry, I
have found that nobody comes beating down your door to tell you, it's possible you may
have in excess of 20% equity in your home. And by the way we would like to remove your
policy payment, although steps have been taken to try to change this in our Government).
How Can I Remove
PMI Insurance?
This is the easy part. A lender will take many factors into consideration. Some of
these will include the borrowers past payment history on their loan. This factor alone (in
some few cases) may deter a borrower from being granted the request to drop
PMI Insurance. It is best to check with your lender first before going any further if
there may be any questions.
The lender has been given suggested guidelines for PMI
removal from the lending bodies. They generally like to see at least 2 years of ownership
with 20% minimum equity or less than 2 years ownership 25% minimum equity. This
information should be obtained directly from the lender when inquiring about the
possibility of having the PMI Insurance dropped from a mortgage payment.
In most States the lender will require the borrower to attain the services of a
State Certified real estate appraiser to perform an appraisal of their property on Form
1004. After the appraisal is completed the borrower then delivers the appraisal to his/her
lender for review.
After review of the appraisal and the borrowers past credit history the lender then
contacts the borrower with their findings. Removal of the PMI Insurance premium from the
mortgage payment will reduce the borrowers monthly payment.
Side note:
For loans made after July 1999, lenders are required
by federal law to automatically cancel PMI when the loan balance falls
below 78 percent of the purchase price — not when the homeowner
achieves 22 percent equity, which will happen much more quickly with
property values going up as quickly as they do. Homeowners, though have
the right to cancel PMI (for loans made after July 1999) once
their equity reaches 20 percent, irrespective of the original purchase
price. Additional information is available on HUD's website, including
contacts for complaints against your lender.
HUD's website (Please let us know if this link
expires, Thank You!)
What if I'm Not Sure I have
at Least 20% Equity in My Home?
We here at Bostedo Appraisal Services can help You
determine the right course of action to be taken. With information You supply us,
we can consult You over the phone as to whether or not it would be advisable to
have a full appraisal done on Your property. Our initial consultation is free and
with no obligation to help You determine the right path.
What Next?
To order an appraisal or to find out if You may have enough equity in Your
property (click here), please fill out as much
information as possible on our order page and click the "SUBMIT ORDER"
button at the bottom of the form. We will be in contact with You shortly to
confirm the order and to get any additional information that may be needed.
The only fees required would be for a full appraisal of Your property if
after consultation it were deemed warranted. If after consultation You feel You
want to proceed with the process of removing Your PMI Insurance premium from Your
mortgage payment we offer Quick Turnaround and Quality Services
that any client would appreciate.
Below is the Public Law 105-216
that was enacted by congress in regards to PMI
Insurance. The file is in .pdf format. If you do not
have Adobe Acrobat or Adobe Acrobat Reader installed
on your computer, the link below will direct you
where to get it.
Click here for Public Law 105-216-July 29, 1998 in .pdf
format.
Click
here to down load Adobe Acrobat Reader for FREE!
***THIS IS WHAT
THE FEDERAL TRADE*** COMMISSION SAYS!
Cancellation
of Private Mortgage Insurance: Federal Law May Save
You Hundreds of Dollars Each Year
Chicago Fed's Advisory Services
Private Mortgage Insurance (PMI): Law Requires
Lenders to Cancel PMI
|
 
 |
WARNING! |
 |
(ARM) Adjustable Rate
Mortgage Holders!
New credit reporting
criteria!
A new credit-scoring system that rates
borrowers based on the type of mortgage they have could
cause people with adjustable mortgages to pay higher
interest rates on everything from credit cards to car
loans.
Some financial experts, however, say this system bears a
close resemblance to so-called universal default, which
allows a credit card company to raise a customer's
interest rate if he makes a late payment with another
creditor.
"This is pretty much going to be all that credit card
companies, student loan companies, auto lenders and
other banks need to charge customers higher rates solely
based on the kind of mortgages they have," said Lynnette
Khalfani, a former reporter for t e Wall Street Journal
and CNBC, and author of "Zero Debt." "Folks who were
teased and seduced to sign up for ARMs just two years
ago are paying for that decision in ways they never
imagined," Mrs. Khalfani said. "You could never fathom
it would cause higher rates on credit cards and higher
payments too. That smacks of unfairness to the
consumer." Not everyone with ARMs is struggling to make
ends meet.
READ MORE... |
 |
|
|
|
CLIENT LOGIN |
|
Clients who have
pre-registered,
CLICK HERE! |
|
|
|
|
