Federal law protects homeowners in some cases, contact a attorney who has experience in dealing with similar cases. Also If you need any help about personal injury matter, Setareh law personal injury attorneys are available to handle these types of cases.
Many homeowners can save thousands of dollars in mortgage insurance costs by keeping a watchful eye on the conditions that require them to buy that type of insurance in the first place.
Homebuyers often are required by lending companies to purchase mortgage insurance when their down payment is below the customarily accepted level, which is usually 20 percent of the purchase price of the home. mortgage insurance protects the lender in the event the homebuyer defaults on the mortgage payments.
Having to purchase mortgage insurance can be costly to the homebuyer. Annual premiums can run up to 1 percent of the amount of the loan. For example, if a homebuyer takes out a $100,000 mortgage, the mortgage insurance premium can cost as much as $1,000 a year or $83 a month. Mortgage insurance premiums vary, often depending on how much of the total cost of the home the purchaser is borrowing.
On the other hand, the availability of mortgage insurance can be a plus for cash-strapped home buyers who can’t make a sizeable down payment. Without mortgage insurance, many companies would be reluctant to lend money to home buyers who can’t put up a 20 percent down payment.
You can avoid paying for mortgage insurance when you’re no longer required to have it by keeping an eye on the value of your home. Once your home equity reaches 20 percent of the original value of the home and you have a history of timely payments, you should no longer be required to purchase mortgage insurance. In fact, the U.S. Homeowners Protection Act of 1998 requires the mortgage company to notify you when you have made sufficient payments on your home so that your equity reaches the 20 percent threshold.
However, you may reach the 20 percent threshold much faster if your home appreciates in value because of favorable real estate market conditions or improvements you made to the property. In such circumstances, the Homeowners Protection Act does not require lenders to notify borrowers that they no longer need mortgage insurance. It is up to the homeowner to contact the mortgage company about canceling the mortgage insurance policy.
To cancel mortgage insurance under these circumstances, the homeowner will usually have to go through a procedure acceptable to the mortgage company. This can involve having your home appraised by a real estate appraiser acceptable to the company, having a good payment history and possibly meeting other requirements.
Keep an eye on what similar homes are selling for in your neighborhood. If you notice that property values have been going up for a while, then it could be time to check with your mortgage company about the possibility of dropping your mortgage insurance. Most Driving without insurance lawyer will be pleased to work with you.