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Add You - Understanding Mortgage Insurance (PMI)
If you have considered debt consolidation then you are probably a little overwhelmed with the mass amount of debt consolidation companies there are to choose from. With some of these debt consolidation companies, it’s hard to even find out what debt consolidation is all about. It seems you have to commit to sharing your entire financial history, as well as sitting through a high pressure sales pitch, with some.It may not have occurred to you that you can take debt consolidation into your own hands. As with most things in life, there are going to be advantages and disadvantag
Each year,your lender must send you a reminder that you have PMI and that you may request cancellation once your have met certain requirements
Borrower Initiated Cancellation
When your mortgage balance reaches 80% of our home's original value, your lender must cancel the PMI at your request if you are current on your mortgage payments, have no other loans on the house and satisfy any lender requirements confirming that your property value has not declined.
Automatic Termination
When your mortgage balance reaches 78% of your home's original value, your lender will automatically cancel the PMI if you are current on your mortgage payments. Note: If your mortgage is classified as a "High-Risk" mortgage, certain other conditions may apply. Ask your lender
Does This Law Apply to FHA or VA Mortgages?
There are a few things that you will want to consistently communicate to every borrower no matter who they are or how much they know about the loan process. Keeping your borrower informed about the things that matter most to them will help build their trust in your ability as a mortgage professional. The more they trust you, the less frustration they’ll experience along the way. Here are a few answers you’ll always want to provide:1. What’s it gonna cost me? Everyone wants to know this whether they’re paying the costs from their savings or rolling them into the loan. Take the t
Private Mortgage Insurance (PMI) was developed to help borrowers purchase a home without putting 20% down as was required by banks and lenders many years ago. I like to think of it as a "hired co-borrower". Two out of five borrowers use PMI to get into home years sooner than they would otherwise. In fact, in the past 40 years PMI has helped make home-ownership a reality for more than 19 million families. Different types of loans refer to it in different ways, and some loans have different requirements for the amount of coverage needed, but it essentially serves the same purpose. It helps protect the lender. Not all loans require mortgage insurance and the premium varies due to different criteria
Conventional Mortgages
When the loan to value for an owner–occupied residence is more than 80% (or the borrower is putting less than 20% down) then Private Mortgage Insurance (or PMI), is typically required. The premium may be paid on an annual, monthly or single premium plan. (The most popular method of payment is the monthly method). The premiums are based on the amount and terms of the loan and may vary according to the loan-to-value, type of loan, term of loan and the amount of coverage required by the lender. The less the borrower puts down the higher the premium. PMI may be waived when the loan reaches 80% or less of the value of the property
VA Mortgages
A VA loan is guaranteed by the Veterans Administration (VA) and the lender is required to collect an up-front one-time fee at closing called the "Funding Fee". This amount is between .50% and 3.00% of the loan amount depending upon the status of the Veteran and if the Veteran has used his VA Benefits previously to purchase a home. There is no monthly premium and there is no refund of the Funding Fee when the loan–to-value is reduced below 80% or if the loan is paid off early
FHA Mortgages
Regardless of the amount of the down payment, FHA requires a one time upfront fee of 2.25% (this may vary from time to time)of the loan amount which may be financed in with the loan. In addition to the upfront fee there is a yearly fee of .50% of the unpaid balance of the loan which is divided into 12 equal payments and paid monthly in the house payment. If the loan is paid in full within the first 7 years there may be a prorated refund of the upfront premium paid. The monthly mortgage insurance premium may not be waived regardless of the loan to value.
Homeowners Protection Act
A federal law, called the Homeowners Protection Act, affects many loans originated after July 29, 1999. The law ensures that your PMI will be cancelled when your have reached a certain level of equity in your home. This means two things to you: Your lender must inform you, both at the time of closing and annually, about your right to request the cancellation of PMI. And your lender may be required to automatically cancel PMI at a certain point if you have not already requested that it be dropped.
How Does the Law Work?
The law is designed to help you better understand PMI. Here is what it requires.
InitialDisclosure
At closing,your lender must provide you with written notification explaining that you have PMI on your loan and how it may be cancelled.
Annual Disclosure
Each year,your lender must send you a reminder that you have PMI and that you may request cancellation once your have met certain requirements
Borrower Initiated Cancellation
When your mortgage balance reaches 80% of our home's original value, your lender must cancel the PMI at your request if you are current on your mortgage payments, have no other loans on the house and satisfy any lender requirements confirming that your property value has not declined.
Automatic Termination
When your mortgage balance reaches 78% of your home's original value, your lender will automatically cancel the PMI if you are current on your mortgage payments. Note: If your mortgage is classified as a "High-Risk" mortgage, certain other conditions may apply. Ask your lender
Does This Law Apply to FHA or VA Mortgages?
<A Health Savings Account (HSA) does not really cover alternative medicine. However, there is a bit more to it.A person using an HSA can withdraw money from this special type of savings account for any type of “approved medical expense.” Approved by whom? The IRS.So, the IRS pretty much thinks that proper medical expenses are any types of Western medicine – pharmaceutical drugs, surgery, doctor visits, etc.However, there are a few things on the list that are alternative medical options. Chiropractors are on the list. So is acupuncture.With acupuncture, i
When the loan to value for an owner–occupied residence is more than 80% (or the borrower is putting less than 20% down) then Private Mortgage Insurance (or PMI), is typically required. The premium may be paid on an annual, monthly or single premium plan. (The most popular method of payment is the monthly method). The premiums are based on the amount and terms of the loan and may vary according to the loan-to-value, type of loan, term of loan and the amount of coverage required by the lender. The less the borrower puts down the higher the premium. PMI may be waived when the loan reaches 80% or less of the value of the property
VA Mortgages
A VA loan is guaranteed by the Veterans Administration (VA) and the lender is required to collect an up-front one-time fee at closing called the "Funding Fee". This amount is between .50% and 3.00% of the loan amount depending upon the status of the Veteran and if the Veteran has used his VA Benefits previously to purchase a home. There is no monthly premium and there is no refund of the Funding Fee when the loan–to-value is reduced below 80% or if the loan is paid off early
FHA Mortgages
Regardless of the amount of the down payment, FHA requires a one time upfront fee of 2.25% (this may vary from time to time)of the loan amount which may be financed in with the loan. In addition to the upfront fee there is a yearly fee of .50% of the unpaid balance of the loan which is divided into 12 equal payments and paid monthly in the house payment. If the loan is paid in full within the first 7 years there may be a prorated refund of the upfront premium paid. The monthly mortgage insurance premium may not be waived regardless of the loan to value.
Homeowners Protection Act
A federal law, called the Homeowners Protection Act, affects many loans originated after July 29, 1999. The law ensures that your PMI will be cancelled when your have reached a certain level of equity in your home. This means two things to you: Your lender must inform you, both at the time of closing and annually, about your right to request the cancellation of PMI. And your lender may be required to automatically cancel PMI at a certain point if you have not already requested that it be dropped.
How Does the Law Work?
The law is designed to help you better understand PMI. Here is what it requires.
InitialDisclosure
At closing,your lender must provide you with written notification explaining that you have PMI on your loan and how it may be cancelled.
Annual Disclosure
Each year,your lender must send you a reminder that you have PMI and that you may request cancellation once your have met certain requirements
Borrower Initiated Cancellation
When your mortgage balance reaches 80% of our home's original value, your lender must cancel the PMI at your request if you are current on your mortgage payments, have no other loans on the house and satisfy any lender requirements confirming that your property value has not declined.
Automatic Termination
When your mortgage balance reaches 78% of your home's original value, your lender will automatically cancel the PMI if you are current on your mortgage payments. Note: If your mortgage is classified as a "High-Risk" mortgage, certain other conditions may apply. Ask your lender
Does This Law Apply to FHA or VA Mortgages?
No matter what, your business will benefit from Six Sigma certification; unless, of course, some unforseen situation happens to disrupt the implementation of the Six Sigma methodology; not the least of which is inadequate Six Sigma training.Six Sigma Certification - Will It Really Benefit Your Organization?The success of Six Sigma certification and implementation depends on many factors. It requires nothing less than a relentless effort and dedication to see that it succeeds. Although specific procedures may be in place, an equal responsibility lies on upper management t
FHA Mortgages
Regardless of the amount of the down payment, FHA requires a one time upfront fee of 2.25% (this may vary from time to time)of the loan amount which may be financed in with the loan. In addition to the upfront fee there is a yearly fee of .50% of the unpaid balance of the loan which is divided into 12 equal payments and paid monthly in the house payment. If the loan is paid in full within the first 7 years there may be a prorated refund of the upfront premium paid. The monthly mortgage insurance premium may not be waived regardless of the loan to value.
Homeowners Protection Act
A federal law, called the Homeowners Protection Act, affects many loans originated after July 29, 1999. The law ensures that your PMI will be cancelled when your have reached a certain level of equity in your home. This means two things to you: Your lender must inform you, both at the time of closing and annually, about your right to request the cancellation of PMI. And your lender may be required to automatically cancel PMI at a certain point if you have not already requested that it be dropped.
How Does the Law Work?
The law is designed to help you better understand PMI. Here is what it requires.
InitialDisclosure
At closing,your lender must provide you with written notification explaining that you have PMI on your loan and how it may be cancelled.
Annual Disclosure
Each year,your lender must send you a reminder that you have PMI and that you may request cancellation once your have met certain requirements
Borrower Initiated Cancellation
When your mortgage balance reaches 80% of our home's original value, your lender must cancel the PMI at your request if you are current on your mortgage payments, have no other loans on the house and satisfy any lender requirements confirming that your property value has not declined.
Automatic Termination
When your mortgage balance reaches 78% of your home's original value, your lender will automatically cancel the PMI if you are current on your mortgage payments. Note: If your mortgage is classified as a "High-Risk" mortgage, certain other conditions may apply. Ask your lender
Does This Law Apply to FHA or VA Mortgages?
Clearly, you don't want to dwell on an image of you or your spouse in a wheel chair or nursing home, but if you don't plan ahead now for such eventualities, you could end up with a crippling financial burden that can strip a family of it's entire nest egg.Funding for eventual long term care must be planned for far in advance, and long term care insurance seems to be the tool of choice. The alternatives really suck by comparison, so it's time to get going to put your plan in place while you still can.Fact is, there is nearly a 50% chance that during retirement, due to m
Homeowners Protection Act
A federal law, called the Homeowners Protection Act, affects many loans originated after July 29, 1999. The law ensures that your PMI will be cancelled when your have reached a certain level of equity in your home. This means two things to you: Your lender must inform you, both at the time of closing and annually, about your right to request the cancellation of PMI. And your lender may be required to automatically cancel PMI at a certain point if you have not already requested that it be dropped.
How Does the Law Work?
The law is designed to help you better understand PMI. Here is what it requires.
InitialDisclosure
At closing,your lender must provide you with written notification explaining that you have PMI on your loan and how it may be cancelled.
Annual Disclosure
Each year,your lender must send you a reminder that you have PMI and that you may request cancellation once your have met certain requirements
Borrower Initiated Cancellation
When your mortgage balance reaches 80% of our home's original value, your lender must cancel the PMI at your request if you are current on your mortgage payments, have no other loans on the house and satisfy any lender requirements confirming that your property value has not declined.
Automatic Termination
When your mortgage balance reaches 78% of your home's original value, your lender will automatically cancel the PMI if you are current on your mortgage payments. Note: If your mortgage is classified as a "High-Risk" mortgage, certain other conditions may apply. Ask your lender
Does This Law Apply to FHA or VA Mortgages?
Interest rate increase what are the positives to it and how can you benefit from it?Just think about the property cycle and you will start to see the positives and if you set it up right, you can ride the wave when interest rates increase.As an Investor, if Interest Rates increase, you don't pay for the total increase.When you're paying off your home and the interest rates increase, who is responsible for the increase? You are...but as an investor you are not, why?.... because we can claim the increase against out taxable income.Lets say, for example - you
Each year,your lender must send you a reminder that you have PMI and that you may request cancellation once your have met certain requirements
Borrower Initiated Cancellation
When your mortgage balance reaches 80% of our home's original value, your lender must cancel the PMI at your request if you are current on your mortgage payments, have no other loans on the house and satisfy any lender requirements confirming that your property value has not declined.
Automatic Termination
When your mortgage balance reaches 78% of your home's original value, your lender will automatically cancel the PMI if you are current on your mortgage payments. Note: If your mortgage is classified as a "High-Risk" mortgage, certain other conditions may apply. Ask your lender
Does This Law Apply to FHA or VA Mortgages?
No. Mortgage insurance on FHA loans can not be cancelled and must be paid for the life of the loan. VA loans don't have PMI. It is called a Funding Fee and is paid or financed at closing and is a non-refundable one-time fee.
Adrian Skiles, GML
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