Homeowners Have A Friend In The Private Mortgage Insurance Business

Private Mortgae Insurance is required by Lenders to be purchased by homeowners putting less than 20% down. This insurance protects mortgage investors against default.

The average cost of Private Mortgage Insurance (PMI) is approximately $85.00 a month. It's not the cost that outrages people, it is the fact that they often pay on the coverage long after they have reached 20% equity.

The problem of overpayment was addressed by the cancellation provision of the Homeowners Protection Act which called for automatic termination once 22% equity was reached.

This law however, does not have a grandfather clause and only helps homeowners who purchased after July 20, 1999.

Homeowners who purchased prior to this date however have a friend within the Private Mortgage Insurance business. PMI Savings gives homeowners tips and pointers on how to remove PMI.

For free information on how to cancel PMI, you may visit the Web
Site at;

http://bwma.com/ses

and click on the banner towards the bottom of the page.

by Tony Gilliam,
Member Bi-Weekly Mortgage Assoc.