Mortgage Insurance Law

The Mortgage insurance laws have changed in the last 10-years so it's important to know the latest. 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.

 

Why PrimeQuote Term Life Insurance for your Mortgage Insurance Law Quote
There are many reasons to choose PrimeQuote Insurance for your Mortgage Insurance Law needs.

	You will only be contacted by us; we never sell your personal information to third parties, like insurance marketers or telemarketers.
	Our state-of-the-art quoting database qualifies you for the inexpensive and excellent coverage you need and deserve.
	We provide quotes from a broad array of insurance companies, making sure you receive the best value for your money that the market has to offer.
	Our longstanding history of excellent customer service and our meticulous attention to detail leaves no stone unturned in our effort to provide you with the best term life insurance.
	We only quote rates from highly rated and respectable insurance companies, which means you receive the best coverage out there.
	We pride ourselves on providing personal customer service during extended business hours, ensuring that you always are able to speak with your assigned representative.

Get Mortgage Law Insurance Quotes

Privacy statement: Your privacy is important to us. PrimeQuote Insurance Services will keep all the information gathered strictly confidential. Your personal information will not be used for any other purpose or given to anyone else.