I am not a mortg. guru and do not know much about the game, but I do know this, for about 10 years now I have been paying $60.00 a month for MIP. Today I got my year end statement and looked at it again and decided I would call. When I called the mortg. company I asked if I had to pay this amount or after so many years did this come as I was told some time ago it was insurance on me if I defaulted my loan. They told me I would be sent out a packet which would explain this and my options. Am I able to remove this and is it a wise thing to do, I mean it does lower the cost of $60.00 a month for nothing if it means nothing to me (and it is MIP not mortgage life insurance). And secondly am I entitled to anything that I have paid into for so many years? I have read a small amount on line and tried to decipher it, and thought I read that as a homeowner you are entilted to a percentage back. Any help or information would be great.
here's a good link along with the pertinent info you need:
For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. Your PMI also can be canceled, when you request - with certain exceptions - when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current.
One exception is if your loan is "high-risk." Another is if you have not been current on your payments within the year prior to the time for termination or cancellation. A third is if you have other liens on your property. For these loans, your PMI may continue. Ask your lender or mortgage servicer (a company that collects your payments) for more information about these requirements.
If you signed your mortgage before July 29, 1999, you can ask to have the PMI canceled once you exceed 20 percent equity in your home. But federal law does not require your lender or mortgage servicer to cancel the insurance.
http://www.ftc.gov/bcp/conline/pubs/alerts/pmialrt.htm
If your statement shows you don't have the required 20% equity to remove it I'd get an appraisal to prove you do have the 20%(assuming you do). Ive read some lenders can be a real pain in the ass while trying to cancel, if thats the case you can(as suggested by Stump) always refinance.
http://www.ftc.gov/bcp/conline/pubs/alerts/pmialrt.htm
For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. Your PMI also can be canceled, when you request - with certain exceptions - when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current.
One exception is if your loan is "high-risk." Another is if you have not been current on your payments within the year prior to the time for termination or cancellation. A third is if you have other liens on your property. For these loans, your PMI may continue. Ask your lender or mortgage servicer (a company that collects your payments) for more information about these requirements.
If you signed your mortgage before July 29, 1999, you can ask to have the PMI canceled once you exceed 20 percent equity in your home. But federal law does not require your lender or mortgage servicer to cancel the insurance.
http://www.ftc.gov/bcp/conline/pubs/alerts/pmialrt.htm
If your statement shows you don't have the required 20% equity to remove it I'd get an appraisal to prove you do have the 20%(assuming you do). Ive read some lenders can be a real pain in the ass while trying to cancel, if thats the case you can(as suggested by Stump) always refinance.
http://www.ftc.gov/bcp/conline/pubs/alerts/pmialrt.htm
