Anonymous
Posted on: 05th Jul, 2005 01:02 am
is it possible that i don't pay for
mortgage insurance?
mortgage insurance?
Hi Edward,
"is it possible that i don't pay for mortgage insurance?"
Yes, it is possible that you need not pay for mortgage insurance. You can avoid doing so by accepting a higher rate of interest on the mortgage loan. Depending on the down payment, the interest rate may increase by .75% to 1% from its usual value. The mortgage interest is also tax deductible.
You can also avoid mortgage insurance in case of 80-10-10 mortgage loan. It includes two loans and a 10% down payment. You should first take a mortgage equal to 80% of the sale price of your home and then a second mortgage for the remaining 10% of the sale price.
The second mortgage offers a high interest rate but since it involves merely 10% of the entire loan, the monthly payments on the two mortgages are lower than that paid for a particular mortgage with mortgage insurance. Even in this mortgage there is the advantage of the interest being tax-deductible.
We hope that this information will clear your doubt.
Regards
Jessica.
"is it possible that i don't pay for mortgage insurance?"
Yes, it is possible that you need not pay for mortgage insurance. You can avoid doing so by accepting a higher rate of interest on the mortgage loan. Depending on the down payment, the interest rate may increase by .75% to 1% from its usual value. The mortgage interest is also tax deductible.
You can also avoid mortgage insurance in case of 80-10-10 mortgage loan. It includes two loans and a 10% down payment. You should first take a mortgage equal to 80% of the sale price of your home and then a second mortgage for the remaining 10% of the sale price.
The second mortgage offers a high interest rate but since it involves merely 10% of the entire loan, the monthly payments on the two mortgages are lower than that paid for a particular mortgage with mortgage insurance. Even in this mortgage there is the advantage of the interest being tax-deductible.
We hope that this information will clear your doubt.
Regards
Jessica.
want to cancel private mortgage insurance.any help?
hi guest,
welcome to the forums.
as you are willing to cancel the private mortgage insurance, i would advise that you request your lender in writing regarding the cancellation. but to make the request for cancellation you should occupy the property as the principal owner. you can apply for the cancellation but your mortgage payment must not have changed in the last one year if you have an adjustable rate mortgage. also you should not have delayed your payments by 30 days more than once in the last 2 years.
in case you have made any house improvement, you can apply for cancellation after 2 years from the time of original purchase or refinance. also the loan to value must be at or below 80% of the current appraised value of your property.
but if there has been no repair in your property, you can apply for the cancellation after 2 years only if you have paid back the loan down to 80% loan to value. in case the current appraised value of your property equals 80% loan to value or below that amount, you can apply for cancellation of the insurance only after 5 years.in order to determine the current appraised value of your property, you should appoint an appraiser acceptable to your lender. the lender may reject your cancellation in case he does not approve of your appraiser. so you should first consult the lender as to how he wants you to handle the appraisal process.
hope you will be benefited from this information.
regards
jessica.
welcome to the forums.
as you are willing to cancel the private mortgage insurance, i would advise that you request your lender in writing regarding the cancellation. but to make the request for cancellation you should occupy the property as the principal owner. you can apply for the cancellation but your mortgage payment must not have changed in the last one year if you have an adjustable rate mortgage. also you should not have delayed your payments by 30 days more than once in the last 2 years.
in case you have made any house improvement, you can apply for cancellation after 2 years from the time of original purchase or refinance. also the loan to value must be at or below 80% of the current appraised value of your property.
but if there has been no repair in your property, you can apply for the cancellation after 2 years only if you have paid back the loan down to 80% loan to value. in case the current appraised value of your property equals 80% loan to value or below that amount, you can apply for cancellation of the insurance only after 5 years.in order to determine the current appraised value of your property, you should appoint an appraiser acceptable to your lender. the lender may reject your cancellation in case he does not approve of your appraiser. so you should first consult the lender as to how he wants you to handle the appraisal process.
hope you will be benefited from this information.
regards
jessica.
As you are willing to cancel the private mortgage insurance, I would advise that you request your lender in writing regarding the cancellation. But to make the request for cancellation you should occupy the property as the principal owner. You can apply for the cancellation but your mortgage payment must not have changed in the last one year if you have an adjustable rate mortgage. Also you should not have delayed your payments by 30 days more than once in the last 2 years.
In case you have made any house improvement, you can apply for cancellation after 2 years from the time of original purchase or refinance. Also the loan to value must be at or below 80% of the current appraised value of your property.
But if there has been no repair in your property, you can apply for the cancellation after 2 years only if you have paid back the loan down to 80% loan to value. In case the current appraised value of your property equals 80% loan to value or below that amount, you can apply for cancellation of the insurance only after 5 years.In order to determine the current appraised value of your property, you should appoint an appraiser acceptable to your lender. The lender may reject your cancellation in case he does not approve of your appraiser. So you should first consult the lender as to how he wants you to handle the appraisal process.
Hope you will be benefited from this information
In case you have made any house improvement, you can apply for cancellation after 2 years from the time of original purchase or refinance. Also the loan to value must be at or below 80% of the current appraised value of your property.
But if there has been no repair in your property, you can apply for the cancellation after 2 years only if you have paid back the loan down to 80% loan to value. In case the current appraised value of your property equals 80% loan to value or below that amount, you can apply for cancellation of the insurance only after 5 years.In order to determine the current appraised value of your property, you should appoint an appraiser acceptable to your lender. The lender may reject your cancellation in case he does not approve of your appraiser. So you should first consult the lender as to how he wants you to handle the appraisal process.
Hope you will be benefited from this information