Unlike conventional loans, where the PMI requirement can be waived after the loan balance drops below 80 percent of
the original loan value, FHA's monthly insurance requirement continues for the life of the loan (or for 11 years if your down payment was at least 10 percent).
With a conventional loan, you can ask the lender to discontinue the PMI premiums once your loan balance reaches 80 percent of
the original loan value.
Personally, we have a fixed - rate, 5 - year mortgage that allows us to increase our monthly payment by 25 % and make a total annual prepayment of 20 % of
the original loan value without any penalty.
A lot of what I read says that PMI can be cancelled when you reach 80 % of
the original loan value, and at 78 % it must automatically removed by the lender.
Not exact matches
The prospect of the DOE «selling» the
loan to an investor group is reportedly unprecedented, but even at the much lower price than its
original value, represents the best chance for U.S. taxpayers to get at least part of their money back.
Your lender must automatically cancel PMI when your outstanding
loan balance drops to 78 percent of the home's
original value, which can take several years.
Typically, this is the
original loan amount and is secured by the
value of the property.
Once your
loan balance reaches 80 percent of the home's
original value, you may ask the lender to discontinue the PMI premiums.
HECM refinancing allows existing HECM borrowers the chance to refinance and pay only the upfront Mortgage Insurance Premium and the difference between the
original appraised
value and the new appraised
value / FHA
loan limit.
Original value is defined as the sales price or the appraised
value of the home when the
loan was made — whichever is less.
Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their
loan balance has been amortized down to 78 percent of the
original property
value.
In addition, you don't have to pay the annual interest so long as the total outstanding
loan (
original loan plus accumulated interest) doesn't exceed the policy's cash
value.
Additionally, the car had an
original value of $ 30,000, 20 % depreciation per year, a $ 1,000 comprehensive and collision insurance deductible and a five year
loan with a 4.21 % APR..
Regardless of the
value of a home, most mortgage insurance premiums cost between 0.5 % and as much as 5 % of the
original amount of a mortgage
loan per year.
With no - appraisal refinancing, the
value of your new
loan will simply be based upon the
original value of your home, as determined by the appraisal conducted when you bought it.
Under the Homeowner's Protection Act (HPA) of 1998, you can request PMI be removed from your mortgage when the balance on your
loan reaches 80 % or less of the home's
original purchase price or appraised
value at the time of purchase (whichever is less).
Using «Data - What If Analysis - Goal Seek», you tell Excel to adjust the Interest Rate Cell until the Present
Value Cell equals the
original loan...
In the
original Mortgage Market Note issued by the FHFA, it was suggested that
loan - to -
value (the percentage of the overall purchase price which was being borrowed) was a major factor in determining if a
loan would default:
Since most FHA mortgages, and most mortgages generally, are repaid before
original loan balances fall 22 percent, this FHA policy may not seem as though it has much
value.
If a subordinate lien (home equity
loan or line of credit) will remain in place, the CLTV can not exceed 125 % based on the
original home
value if there's no new appraisal, and 125 % of the home's current appraised
value for
loans with a current appraisal.
A conventional
loan will allow you to use your current appraised
value instead of the
original purchase price.
In other words, the car depreciated in
value faster than the
original auto
loan was paid off before the trade - in.
You, the borrower, would pay the premiums for that insurance until your PMI is cancelled when your outstanding
loan balance drops to 78 % of the home's
original value.
During this time the market had done well, so when I paid back the funds the net difference in shares that I now owned (including shares purchased with the interest payments) was $ 538.25 less than today's
value of the
original count of shares that were sold to fund the
loan.
The
loan - to -
value ratio (LTV) is the
original loan amount divided by the lower of the sales price or the appraised
value.
In most cases, the lender will allow a borrower to cancel mortgage insurance when the
loan is paid down to 80 % of the
original property
value.
This is advisable only if you have paid more that half of your mortgage or you have made improvements on the house and the current
value is higher than that considered for the
original loan.
With home refinance
loans, your home equity plays the same role your down payment did when you took out the
original mortgage — it represents the portion of the home's
value that is paid for up front, so the lender isn't covering the entire
value of the home.
Consider the cost of the home mortgage: Most people aren't aware that by the time they finish paying on a 30 - year
loan, they will actually be paying over double the home's
original value — due to interest!
Pledge Accounts may be released after 36 months, at the investor's discretion, if a new appraisal shows the current
Loan to
Value is equal to or less than the
original Effective
Loan to
Value (65 % based on the above example).
Due to floating interest rates being the norm for high
value loans, customers may still retain their
original EMIs but might end up with a much longer
loan tenure.
If you didn't need mortgage insurance on your
original mortgage, you don't need it on your HARP
loan, even if your mortgage balance exceeds your property's
value.
I am wondering if the Lender would considering «forgiving» the downside of the
loan to the
original owner at a slight premium to market
value so he can keep his home?
Lenders should automatically terminate the mortgage insurance when your
loan balance reaches 78 percent of the
original home
value.
But that could require a lot of money depending on where your
loan balance is relative to the
original value.
PMI can add hundreds of dollars a year to your
loan, but you can cancel it once you owe less than 78 % of the home's
original value.
Equity is the difference between the amount of your
original loan and the actual
value of the home; if you sell or refinance your home after entering the HOPE program, under the terms of HOPE you are required to share any equity with the FHA.
My
original plan was to take out a new
loan for the full
value (
loan plus other person's share), and «buy» the car as if I were buying it from a private seller.
Your lender must terminate PMI even if the principal balance of your
loan has not actually reached 78 percent of the
original value of your home — for example, because the
value of your home declined.
Are you saying that you have paid the
loan amount down to 78 % of the
original value of the
loan, or that because of market conditions you have greater than 20 % equity?
The AFR is useful for tax concepts such as
Original Issue Discount (when issuers sell low - interest or no - interest bonds or
loans at less than face
value, attempting to recharacterize interest income as return of principal), various grantor trusts (e.g. GRATs), and so forth.
You can benefit from reduced monthly payments and lower interest rates that also save thousands of dollars on the
original value of the
loan.
Most mortgages allow you to prepay 20 % of the
original value of the
loan which is way more than most people can pay down so they don't benefit at all from the ability to put down more than 20 %.
Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their
loan balance has been amortized down to 78 % of the
original property
value.
For an IRRRL, the main goal is to get a lower interest rate, so the appraised
value of your home at the time of the
original loan is sufficient for underwriting purposes.
By the end of the 30 - year fixed
loan, you'll end up paying nearly 2.5 times what the
original loan amount was and almost double the
value of the home.
Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their
loan balance has been amortized down to 78 % of the
original property
value.
Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their
loan balance has been amortized down to 78 % of the
original property
value and you have a positive payment history the preceding two years.
For example, suppose that the house had a fair market
value of $ 100,000 that was increasing at a rate of $ 1,000 per year, and the
original loan amount was $ 80,000.
Additionally, the car had an
original value of $ 30,000, 20 % depreciation per year, a $ 1,000 comprehensive and collision insurance deductible and a five year
loan with a 4.21 % APR..