Resources
More Resources
More Resources
Bad Credit Debt Consolidation: The Way Out
By saurabh
Caught up in a bad credit cycle? Take heart! You are not alone; you can take recourse in bad credit debt consolidation. Millions of individuals across the world find themselves in such a position at Read more...
Fund Your Residential And Commercial Real Estate Deals With Opi- Other People’s Ira’s-jane4
By Tony Seruga, Yolanda Seruga and Yolanda Bishop
A private lender offers many benefits over the traditional bank loan for investing. With a private lender you have the advantage of receiving your funds in a much more timely manner. A bank will take Read more...
How To Repair Your Credit With Credit Cards
By Ed Vegliante
Very few people live their entire lives without inflicting any damage upon their credit scores. Whether it be high balances on credit cards, bankruptcy, collections issues or financing troubles, Read more...
Tips For Debt Management
By Jeffrey Cash
Let’s face it, debt is a difficult subject to tackle. According to multiple sources of data, the American consumer can eliminate ALL forms of debt, including mortgage debt, in 7.5 years, provided Read more...

 

 

 

 

 

 

 

finance Article

Below, you'll find extensive information on leading finance articles and products to help you on your way to success.

Cancellation Of Private Mortgage Insurance: Federal Law May Save You Hundreds Of Dollars Each Year
By ameen kamadia
If you put less than 20 percent down on a home mortgage, lenders often require you to have Private Mortgage Insurance (PMI). PMI protects the lender if you default on the loan. The Homeowners Protection Act of 1998 - which became effective in 1999 - establishes rules for automatic termination and borrower cancellation of PMI on home mortgages. These protections apply to certain home mortgages signed on or after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. These protections do not apply to government-insured FHA or VA loans or to loans with lender-paid PMI.

For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. Your PMI also can be canceled, when you request - with certain exceptions - when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current.

One exception is if your loan is "high-risk." Another is if you have not been current on your payments within the year prior to the time for termination or cancellation. A third is if you have other liens on your property. For these loans, your PMI may continue. Ask your lender or mortgage servicer (a company that collects your payments) for more information about these requirements.

If you signed your mortgage before July 29, 1999, you can ask to have the PMI canceled once you exceed 20 percent equity in your home. But federal law does not require your lender or mortgage servicer to cancel the insurance.

On a $100,000 loan with 10 percent down ($10,000), PMI might cost you $40 a month. If you can cancel the PMI, you can save $480 a

year and many thousands of dollars over the loan. Check your annual escrow account statement or call your lender to find out exactly how much PMI is costing you each year.

Additional provisions in the law
·New borrowers covered by the law must be told - at closing and once a year - about PMI termination and cancellation.
·Mortgage servicers must provide a telephone number for all their mortgage borrowers to call for information about termination and cancellation of PMI.
·Even though the law's termination and cancellation rights do not cover loans that were signed before July 29, 1999, or loans with lender-paid PMI signed on any date, lenders or mortgage servicers must tell borrowers about the termination or cancellation rights they may otherwise have under those loans (such as rights established by the contract or state law).

Next Steps

Some states may have laws that apply to early termination or cancellation of PMI - even if you signed your mortgage before July 29, 1999. Call your state consumer protection agency for more information about your state's rules. Fannie Mae and Freddie Mac, which buy home mortgages from lenders, also may have guidelines affecting termination or cancellation of PMI on home mortgages signed before July 29, 1999. Check with your lender or mortgage servicer, or call Fannie Mae or Freddie Mac, for more information.

Article Source: http://www.articleblender.com

Ameen Kamadia, known as "The Millionaire Loan Officer" offers dozens of free articles about mortgage marketing. Get dozens of great cheap lead generation ideas at his free Mortgage Marketing website.


We strive to provide only quality articles, so if there is a specific topic related to finance-credit-loan that you would like us to cover, please contact us at any time.

And again, thank you to those contributing daily to our finance website.

Iraq Oil Boom on the Horizon
Seven years after Saddam's fall, Iraq’s government is finally able to plan the development of new oil fields.7 Stocks for the Next 7 Years
Market guru Jeremy Grantham expects shares from high-quality companies to be top performers.Should You Convert to a Roth IRA?
Ask yourself these five questions to determine whether you should move your money from a traditional IRA to a Roth.Take Credit for Your Kids
Each qualifying child could slash your tax bill by up to $1,000.The Challenge of Deducting Medical Expenses
Some married couples could boost their tax break by filing separate returns.

Pic

Solutions For Funding A Mortgage
By Rosy
It’s nothing new when people are buying new homes through mortgage finance or loan; familiarity of mortgage finance is long spread. The alterations brought in mortgage financing in last few years Read more...

Pic

The Benefits Of Credit Repair
By Guy Ray
Credit repair has several benefits. One benefit is you can do it yourself. The downside is you’ll need truckloads of patience and a generous amount of time to do it. Our society lives by the Read more...