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Written by Tamara Schmitt
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Monday, 07 November 2005 |
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PMI companies write insurance protecting approximately the top 20% of the mortgage against default, depending on the lender’s and investor’s requirements, the loan-to-value ratio, and the particular loan program involved. |
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Last Updated ( Tuesday, 22 August 2006 )
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Could obtaining PMI help me qualify for a larger mortgage |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
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Yes. Let’s say that you are a family with $42,000 annual gross income and monthly revolving debts of $800 (car payment and credit cards) and have $10,000 for a down payment and closing costs on a mortgage at 7% interest. |
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Last Updated ( Tuesday, 22 August 2006 )
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Private Mortgage Insurance Cost |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
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Costs vary from insurer to insurer, as well as from plan to plan. For example, a highly leveraged adjustable rate mortgage would require the borrower to pay a higher premium to obtain coverage. |
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Last Updated ( Tuesday, 22 August 2006 )
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How is Private Mortgage Insurance Cost Paid |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
PMI fees can be paid in several ways, depending on the PMI company used. Borrowers can choose to pay the first-year premium at closing; then an annual renewal premium is collected monthly as part of the house payment.
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Last Updated ( Tuesday, 22 August 2006 )
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Applying for Private Mortgage Insurance |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
Although the buyer typically bears the cost of PMI, the lender is the PMI company’s client, and shops for the PMI on behalf of the borrower. Many lenders deal with only a few PMI companies because they know the guidelines for those insurers.
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Last Updated ( Wednesday, 23 August 2006 )
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Cancellation of Private Mortgage Insurance |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
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.
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Last Updated ( Tuesday, 22 August 2006 )
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History of Private Mortgage Insurance |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
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Private Mortgage Insurance originated in the 1950s with the first large carrier, Mortgage Guaranty Insurance Corporation (MGIC), referred to as “magic”. For this reason, early PMI methods were deemed to “magically” assist in getting lender approval on an otherwise unacceptable loan package. Today, there are eight PMI insurance underwriting companies in the United States. |
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Last Updated ( Tuesday, 22 August 2006 )
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Private Mortgage Insurance Companies |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
Below is a small list of PMI Companies to get you started with. Please just remember the rule - always check them all out for the best deals you can find. Just because these companies are listed here DOESN'T mean we support or do business together in anyway. See Below...
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Last Updated ( Tuesday, 22 August 2006 )
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