Question:

What are the mortgage insurance requirements?

Answer:

Mortgage insurance requirements have recently changed a little, and in favor of the borrower.

  • Private mortgage insurance premiums are fully or partially tax deductible through 2010.
  • Fancy mortgage insurance products are available on the market allowing people to combine mortgage insurance with term life insurance and have better protection in case of an accident or unemployment.
  • Some lenders may waive the mortgage insurance requirement in exchange for a higher rate.
  • A second mortgage or private and government down payment assistance can be used to provide the down payment and satisfy the mortgage insurance requirements.

The Homeowners Protection Act of 1998 spares borrowers from being charged mortgage insurance throughout the lifetime of the loan, as lenders are required to both

  1. inform borrowers at closing and each year of their right to cancel PMI if 20% equity is reached and they are current on the mortgage;
  2. automatically terminate PMI payments, according to the new mortgage insurance requirements.
Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: