The Homeowners Protection Act of 1998 established rules for automatic termination and borrower cancellation of Private Mortgage Insurance (PMI) for home mortgages. These protections apply to certain home mortgages signed on or after July 29, 1999 for the home purchase, initial construction, or refinance of a single-family home. It does not apply to government-insured FHA or VA loans, or to loans with lender-paid PMI.
With certain exceptions (home mortgages signed on or after July 29, 1999) your PMI must be terminated automatically when 22% of the equity of your home is reached, based on the original property value and if your mortgage payments are current. It can also be canceled at your request with certain exceptions, when you reach 20% equity, again based on the original property value, if your mortgage payments are current.
Exceptions:
Ask your lender or mortgage servicer for information about these requirements. If you signed your mortgage before July 29, 1999 you can request to have the PMI canceled once you exceed 20% home equity. But, federal law does not require your lender or mortgage servicer to cancel the insurance.
Coast to Coast Funding is the leading mortgage company specializing in financing non-warrantable condos. We are a direct & wholesale lender serving the entire state of California. Check out the homebuyer or mortgage broker sections to find out how we can help!
Company NMLS: 92145
Company DRE: 01524242
Individual NMLS: 498630
Individual BRE: 01486490
1 Orchard Road, Suite 235
Lake Forest, California 92630
Phone: (949) 339-3555
info@condolitigation.com
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