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Mortgage Insurance |
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Mortgage Insurance |
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S 318, the "Homeowners Protection Act of 1998" has been signed by President Clinton. This will allow homeowners to cancel their private mortgage insurance when 20% equity (80 LTV) is achieved. It also provides for automatic cancellation at 22% equity (78 LTV), ***** please note that this provision is based on the original appraised value and does not take into account any property appreciation! Homeowners must own the property at least one year, and make 12 mortgage payments. The mortgage must be current and cannot have been more than 15 days late in the last 12 months, and there cannot be any subordinate liens against the property. An appraisal may be required. Requests would have to be made in writing... Mortgage insurance would terminate at mid-life for "high risk" mortgages that do not exceed Fannie Mae and Freddie Mac conforming loan limits ($333,700 as of 04/21/2004), and for those high risk mortgages above the conforming loan limits, cancellation would terminate at 23% equity (77LTV). Fannie Mae and Freddie Mac have been directed to establish industry guidelines for defining a "risky" borrower. The above information, though believed accurate, is not guaranteed call or email for up to date guidelines ... Return
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