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 Posted: Wed Dec 03, 2008 6:15 am Post subject: home owners protection act (1998) |
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Hello..my question to you all would be-
does the home owners Protection act (1998) has any influence over my PMI? Does it really help lower my PMI cost?
brown_brooke
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brown_brooke
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| Posted: Wed Dec 03, 2008 8:37 am Post subject: |
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Hi,
This Act has a close significance for home mortgages. This act controls both automatic cancellation of PMI as well as cancellation from the borrower's end. Some of the home mortgages since 1999 are governed under this act (inclusive of refinances). Loans in connection with the lenders payments towards PMI and the VA loans are free from it.
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ArindamSenIndies
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| Posted: Wed Dec 03, 2008 11:31 am Post subject: |
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Hi..check if you're nearing a 22% home equity (upon the initial worth of your property). In that case PMI would be automatically canceled under this law. Also, remember that the mortgage payments have to be current and there should not be any high-risk concerning you.
Plasticmind
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Plasticmind
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| Posted: Wed Dec 03, 2008 11:34 am Post subject: |
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That may be plastic but it's been my experience (four times) that you have to make the mortage holder aware of this...it was not 'automatic' for me ever.
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Lori
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| Posted: Wed Dec 03, 2008 10:01 pm Post subject: |
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| Quote: | | Does it really help lower my PMI cost? |
It doesn't lower the cost of your PMI.
Once you reach an 80% loan to value ratio your lender can no longer require you to carrier the PMI.
(77% for high risk borrowers)
See THIS LINKY.
But like Lori said, if you don't initiate this it will never happen and also you have to pay for a new appraisal, usually about $300.
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GarySpicuzza
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| Posted: Wed Dec 17, 2008 12:36 pm Post subject: |
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| Quote: | | ..it was not 'automatic' for me ever. |
Thanks for upgrading my knowledge..
| Quote: | | Once you reach an 80% loan to value ratio your lender can no longer require you to carrier the PMI. |
Do you suggest us to carry PMI under this situation? What could be the problems if we don't?
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Plasticmind
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| Posted: Wed Dec 17, 2008 12:53 pm Post subject: |
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| Quote: | | Do you suggest us to carry PMI under this situation? What could be the problems if we don't? |
I'd suggest never carrying it, but you HAVE to it's not an option...it's insurance that if you default the martgage company get's their money, so it's no benefit to you because they still come after you...it is required in all mortages that are for over 80% of the value...
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Lori
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| Posted: Mon Feb 15, 2010 9:01 pm Post subject: pmi short sale |
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Why would I have to pay the PMI a large sum of money if the bank has agreed to a shortsale?
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ms miller
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| Posted: Mon Feb 15, 2010 11:28 pm Post subject: |
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| Quote: | | Why would I have to pay the PMI a large sum of money if the bank has agreed to a shortsale? |
I don't know I give up...what did the bank and/or PMI carrier say was the reason? Were you behind on your payments? if so that would also make you behind on your PMI premiums...is it to catch it up so the policy is still enforce?
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Lori
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