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Cancel Your PMI to Save Hundreds

We received an awesome late Christmas gift in the mail today. It was a letter informing us that our PMI (Private Mortgage Insurance) has been canceled. PMI insurance is insurance on the mortgage that is for the good of only the bank. It covers them in the case you default on your loan. If you are not putting 20% down on your home when you purchase it, you will need to pay this insurance that amounts an average of $67 per $100,000.00. We are still not sure as to why the bank spontaneously canceled our PMI as this is rare. … Continue reading →

Insurance Blog Week In Review July 24-30, 2007

Insurance Term Of The Week: Cancellation Wednesday July 25, 2007. An escrow account is offered by mortgage and finance companies to help collect Mortgage insurance, Homeowners insurance premiums and in some cases property taxes. Escrow accounts can be a great way to avoid annual large bills To learn more about Escrow Accounts and your insurance read Wednesday’s Blog. Thursday July 26, 2007. The Insurance Glossary of Terms was expanded and Insurance Terms I and Insurance Terms J-K were added added to the Insurance Blog Glossary. A | B | C | D | E | F | G | H … Continue reading →

Insurance Terms: M

A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z Managed Care is a comprehensive health care arrangement between an employer and/or an insurance company. Selected medical and health providers agree to offer care for a discounted rate to the membership of the plan. Managed care systems use the established medical protocols and procedures generally agreed by the medical community as cost effective. Marine Insurance is insurance coverage on goods while … Continue reading →

Mortgage Insurance and Your Money

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If you own your home, do you know if you are paying out for mortgage insurance each month? Many people don’t. It is often one of those fine details that get lost in all the mess of paperwork and decisions that go into buying a new home. What exactly is mortgage insurance? It is insurance the bank that holds your loan will require in certain circumstances. The insurance doesn’t protect you, the homeowner, from any catastrophe. This insurance only protects the bank if you foreclose on your loan. A typical misconception is the insurance will protect you from losing your … Continue reading →

Private Mortgage Insurance (PMI)–What If Your Home Value Has Increased?

Most home buyers today are able to secure a mortgage loan with is little as 3-5 percent of the home value as a down payment. This has been a nice way for the average family to get into a home without waiting for years to save up the 20 percent down payments our parents had to scrimp and save years for in order to buy their first homes. One of the reasons lenders have been able to allow home buyers to secure loans with less then 20 percent down has been to add Private Mortgage Insurance (PMI). Loans secured after … Continue reading →

Property Mortgage Insurance (PMI) For Loans Opened Before July 1999.

My first suggestion to homeowners who currently have a loan opened before July 1999 is to consider refinancing. The chances are great that you may be able to obtain a new loan at a much lower interest rate even now as these rates are starting to climb. If for some reason it is not possible for you to refinance then you might want to review your loan documents and check your statements to see if you are paying Private Mortgage Insurance (PMI). Home buyer’s who put less than 20 percent down on a home mortgage, are usually required by the … Continue reading →

What is PMI–Private Mortgage Insurance?

The majority of us need some kind of financing in order to purchase a home. Many homeowners also elect to make monthly payments into an escrow account in order cover property taxes and insurance. The average house payment includes principal and interest, along with the escrow fees due and adjusted each year. However a large number of homeowners pay another charge every month known as “PMI” or Private Mortgage Insurance. PMI is usually required on conventional loans when the down payment is less than 20% of the loan. PMI protects the bank or lender when a home buyer defaults on … Continue reading →

Buying A New Home? Don’t Forget Your Insurance Binder.

We made an offer on our dream house last week! Isn’t it pretty? Now we have so many things to do just to get ready to move it’s easy to overlook one thing or another. Packing and cleaning our current house and getting it ready to sell, changing all the utilities, addresses and other important things is high on our list. We have 30-days to close this deal and a lot of work to do just to get ready. The first and most important step has been making sure we have our mortgage loan started. In just a few weeks … Continue reading →

The Importance of Saving for a Down Payment

If you have ever dreamed of home ownership then you must have thought about the dreaded down payment. It is recommended by most people to save between ten and twenty percent of the home’s cost for a down payment. This can be a large amount of money depending on the type of home that you buy. If you were to buy a moderately priced house of $150,000, this means that you would need to save between $15,000 and $30,000 for your home. There are many other options available to new homebuyers these days. Many mortgage companies are willing to let … Continue reading →