A Homeowner's Guide to Private Mortgage Insurance (PMI)
Homeowner's Guide to Private Mortgage Insurance
As low- and no-money down mortgages have become increasingly popular, the number of mortgages needing private mortgage insurance (PMI) has skyrocketed, with millions of new policies issued in the past few years alone.
HSH Associates has fielded questions about PMI for many years, especially since the Federal Homeowners Protection Act became law in 1999. How do homebuyers get PMI? Where does it come from, and how does it work? Who does it benefit, and why? How can you get rid of it when it's no longer needed? Are there mortgage choices which can help me avoind paying PMI at all?
Now, a new brief from HSH addresses those questions and more.
The latest in HSH's Guide to: series of consumer information pamphlets, A Homeowner's Guide to Private Mortgage Insurance explains how PMI programs began, the different kinds of MI, various payment options available, how the new law affects PMI, and the procedures for removing it.
While certain new borrowers may see their required MI subject to automatic cancellation, other mortgages contain no such provisions, requiring borrowers to take the initiative to remove unneeded policies which can cost $30 to $100 (or more) each month.
A Homeowner's Guide to Private Mortgage Insurance provides valuable information for any homeowner whose loan requires MI. The specifics of when and how it can be cancelled are spelled out in plain language. A table of how equity is built by amortization alone and how it builds with a combination of amortization and home price appreciation will help consumers to understand when MI policies may be cancelled, and a sample letter to send to a lender or servicer to initiate the task is also provided.
This booklet is also available in combination with our Homebuyers Mortgage Kit for an additional price of $2.
If you prefer, you can send a money order (sorry, no personal checks) to this address:
51 Route 23 South
Riverdale, NJ 07457
Accredited media wishing to preview a copy should request a copy. Please include the name of your media outlet, your office address, and your e-mail address.
The booklets in the "A Homeowner's Guide To" series include:
- "A Homeowner's Guide To Home Equity Loans and Lines of Credit"
- "A Homeowner's Guide To Refinancing Your Mortgage"
- "A Homeowner's Guide To Prepaying Your Mortgage"
- "A Homeowner's Guide To Private Mortgage Insurance"
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