Private Mortgage Insurance Basics

Will you be asked to pay Private Mortgage Insurance, or PMI? Most lenders will require you to carry PMI if you cannot put 20% or more of your loan amount forward as a down payment. PMI protects the LENDER in case you default on your payments. PMI does not protect you, the borrower. The lender will secure the PMI policy for you, and you will pay for it. Most people choose to have PMI added to their monthly mortgage payments, but other payment arrangements are possible. The monthly cost of PMI is based on your loan amount. An approximate cost of PMI for a $100,000.00 loan is about $50.00 a month.

Your Magic Number

When the equity in your home reaches 20%, you can have the PMI policy cancelled. Your monthly payment will be recalculated to reflect that you are no longer paying for the insurance, and you can save some money. But lenders do not have to cancel your PMI until your equity reaches 22%, so you can spend extra money on this that you don't have to. Your best bet is to figure the dollar amount that you need to reach in order to have 20% equity. Then, obtain an amortization schedule from your lender, and see when you will reach that figure. That is the date to keep in mind so you can cancel it without any extra cost to you.

It's Not Always Automatic

Not all people have the convenience of having their PMI automatically cancelled. The Homebuyer's Protection Act that requires lenders to do this does not cover loans that closed before July 29, 1999. It also does not cover VA loans or FHA loans. So be aware that you might not have someone else taking care of this for you. Check it out!

Genesis Font is an SEO and Developer for LoansInteractive.com - Mortgage and Loan Officer Websites. We also offer Quality Web Hosting Services.

---

Adjustable Rate Mortgage - How They Work?

How does an ARM work.The borrowers interest rate is determined initially by the cost of money and the time the loan is made. Once the rate has... Read More

How to Compare Fixed Rate Mortgages and Adjustable Rate Mortgages

There are many types of mortgages, and the more you know about them before you start, the better. To compare one Adjustable Rate Mortgage with another or... Read More

What Exactly Is A Reverse Mortgage And How Does It Work?

A reverse mortgage is a certain loan that allows the older generation to take their home equity and turn it into cash. With this type of loan... Read More

Home Loans ? Lenders Continue to Offer High-Risk Loans

Home prices in the Untied States continue to soar, and the remarkable run of real estate as the "must have" investment continues. The median price of a... Read More

Why Choose a Home Improvement Loan?

Many people choose to take out home improvement loans so they can give their house a new look before selling.Home Improvement Loans can help you if you... Read More

Home Equity Line of Credit ? Great Idea for Rainy Day Emergencies

Most Americans tend to live on a paycheck-to-paycheck basis, and the typical household has nearly $10,000 in credit card debt. Adding to that is the fact that... Read More

Get the Best Rate on Your Home Mortgage Loan

Home mortgage interest rates hit record lows in 2004 and have remained at record lows as we go through 2005. It is possible today to get a... Read More

Home Loan Applications Made Easy

You have finally found the home of your dreams. You have searched all over and are ready to purchase it. Before you even make your offer you... Read More

Home Equity Loans 101

A secured home loan differs from an unsecured loan in that the secured loan borrows against one's home as collateral, thereby reducing the risk to the lender.As... Read More

Reverse Mortgages: Information You Need to Know

Reverse Mortgages are exploding in popularity and as the baby boomers reach age 62 and beyond they will become eligible to cash in on their home equity... Read More

5 Things In Selecting The Best Mortgage - You Should Know

Your goal is not only to find the best rates and programs, by searching through a huge number of lenders products, and save yourself thousands of dollars... Read More

Why You Should Not Get Hung Up on the Interest Rates!!

This is what a mortgage can do for you!AND Why you shouldn't get hung up on the interest rate!Let me show you the bottom line or the... Read More

Mortgage Advice

In the US today more households have mortgages than ever before. In fact the chance of you having or knowing someone who is paying off their mortgage... Read More

The Real Truth About Those: Online Get a Better Loan Web Sites - 6 Things to Look For

You have seen the Commercials on TV go this or that web Site and Refinance your Home and Save thousands. Tempting isn't it? Do they really save... Read More

Mortgages After Bankruptcy: Easier Than You Would Expect

Give yourself time to rebound. Whether you had to turn to bankruptcy because of a divorce, a medical emergency, a job loss, or a problem spending habit,... Read More

Applying for a Home Mortgage Loan Online - The Pros and Cons

If you have considered applying for a home loan mortgage online, there are a few pros and cons to think about with getting a home mortgage loan... Read More

Internet & Mortgage Calculations

"You've been approved!" The words you have always wanted to hear when you filled out the home loan application. It swirls through your mind the opportunities and... Read More

Buying a House or a Home?

A house is just that, a house, until someone lives in it. That's when it becomes a Home. There's a big difference. At our house, we always... Read More

13 Extra Costs to be Aware of Before Buying a Home

Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price -... Read More

Home Mortgage Quotes Online - How Do They Compare To a Quote From a Broker in The Real World?

Online home mortgage quotes are very similar to the quotes given by mortgage brokers in "the real world," except lower. With the reduced cost due to a... Read More

What Are Home Equity Loans?

A home equity loan is simply borrowing on the difference of the value of your home and the outstanding mortgage on the house. Lets say, you have... Read More

FHA Home Mortgage Purchase or Refinance Loan - Why You Might Consider Getting an FHA Loan

Most borrowers have heard of FHA home loans. They are very common. You hear about them mostly as loans for first time borrowers, which is common. However,... Read More

California Bad Credit Mortgage

California is a beautiful place to live There is no doubt about that. But, to live in California you must pay the price, which is sky high... Read More

Where To Find The Best Rates For Your Mortgage?

As with all of my articles this will be based on a scenario in my home town. (Which may be similar to yours).Loans and mortgages can be... Read More

Reverse Mortgages: When Is One Right For You?

How do you know if a reverse mortgage is right for you? The answer depends on your current financial situation of course.But other factors such as your... Read More

How Much Interest is Your Home Equity Earning?

How much interest are you earning on your home equity? If you answered nothing, zero, zilch, zip you are correct. What would you do if you could... Read More