Posts Tagged ‘1862 Mortgage’
Tuesday, May 1st, 2012
With good preparation, most things are easier. That works in mortgages too! Today, I want to give you some ideas that can make your mortgage experience less painful.
Income Items:
- Gather your documents. Today, many people will have to produce 2 years’ complete tax returns, including W2′s, 1099′s, K1′s, and all the schedules, as well as a month’s worth of pay stubs.
- Be prepared to explain them. Deductions in your returns and your pay stubs may impact the income your lender will use to qualify you which, in turn, has a big impact on the loan you will get.
- Have a breakdown of base pay versus overtime for both your pay stubs and 2 years’ W2′s. Lenders treat overtime (and bonus income) differently than your base pay. Be prepared to explain any changes over the last few years because your loan officer will ask you about it.
- Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.
- You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.
- Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).
- If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).
- Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.
- Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.
- Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.
Asset Items:
- Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.
- You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.
- Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).
- If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).
Credit Items:
- Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.
- Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.
- Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.
When buying a home, remember the Boy Scout motto, “Be prepared”. Following these suggestions will make your loan approval easier and less stressful.
Please remember that each mortgage company and application is different so for the most accurate information always talk to your preferred loan officer. To find out more information, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.
1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.
Information provided by: KCM Blog
Tags: 1862 Mortgage, applying for a mortgage, buying, Buying a Home, caroline ruhl, first time buyers, home, home search, housing market, illinois real estate, iowa real estate, mortgage, mortgage application, mortgage rates, mortgages, Quad Cities Real Estate, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
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Tuesday, April 17th, 2012
Ruhl&Ruhl REALTORS was once again ranked the largest privately-owned real estate company in Iowa, according to RISMedia’s 2012 Power Broker Report.
The report ranks the top 300 real estate companies in the country according to the number of transactions and sales volume. Ruhl&Ruhl ranked 93rd in the country for the number of transactions closed, which was 4,152 in 2011.
Other Iowa Companies Ranked as follows.
| Company Name |
Transactions Rank
|
Transactions
|
Sales Volume
|
Total Offices
|
Total Agents
|
Transactions per Agent
|
| Ruhl&Ruhl REALTORS |
93
|
4,152
|
$593,082,327
|
11
|
275
|
15.1
|
| Skogman Realty, Cedar Rapids |
136
|
3,151
|
$495,969,414
|
5
|
221
|
14.26
|
| Mel Foster Co., Quad Cities |
150
|
2,939
|
$419,362,790
|
9
|
231
|
12.72
|
| Coldwell Banker Mid-America Group, REALTORS, Des Moines |
186
|
2,530
|
$385,564,406
|
5
|
186
|
13.6
|
“2011 was a wonderful year for Ruhl&Ruhl REALTORS – our sales volume grew by 7.3% and we had 6.8% more transactions than the prior year,” said Caroline Ruhl, President of Ruhl&Ruhl REALTORS. “And it looks like 2012 will be even better! For the first quarter sales volume closed was up 50.5% over the first quarter of 2011 and 39.9% more transactions were closed.”
On average, Ruhl&Ruhl agents sold 15.1 properties per agent, as either listing or selling agents, which places Ruhl&Ruhl agents among the most productive in the country. The National Association of Realtors reports an average of 7 sales per agent nationally.
“We are excited and proud to earn this ranking,” Ruhl said. “I have been blessed to be surrounded by the best people in our business. At the end of the day, it always comes down to having the right people.”
To view the 2012 Power Broker Report visit this link, http://remag.rismedia.com/t/14873.
A family-owned company since 1862, Ruhl&Ruhl REALTORS has grown to 279 sales associates, 58 employees and eleven offices, selling more than 4,100 homes in eastern Iowa, western Illinois and southwestern Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, Maquoketa and Muscatine, Iowa; and in Moline, Illinois. In addition to residential sales, the company offers services in relocation, property management, real estate investments, new home sales, land development, farm sales, senior services, home vendor services, insurance services through the Nelson Brothers Agency and mortgage services through 1862 Mortgage. For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.
Tags: 1862 Mortgage, agents, buying, Buying a Home, caroline ruhl, home search, housing market, illinois real estate, illinois real estate communities, Illinois Real Estate Market, iowa real estate, iowa real estate communities, Iowa Real Estate Market, multiple listing service, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, Real Estate News, Real Estate Sales Volume, realtors, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling, selling your home
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Monday, April 2nd, 2012
Soon it will cost a little more for some mortgage loans.
The Federal Housing Authority (FHA) will have a new premium structure for FHA-insured single-family mortgage loans, increasing the Annual Mortgage Insurance Premium (MIP) it collects by 0.10 percent. These premium changes will impact new loans insured by the FHA, effective April 9, 2012. Loans with amortization terms of 15 years or less, and a loan-to-value ratio of 78% or less, remain exempt from the Annual MIP.
FHA reports that this increase is a part of ongoing efforts to encourage the return of private capital to the housing market and to protect capital reserves, according to a statement.
In addition, the Up Front Mortgage Insurance Premium (UFMIP) will increase from 1 percent to 1.75 percent of the base loan amount, effective April 9, 2012 as well. This increase applies regardless of the amortization term or loan to value ratio. FHA will continue to permit financing of this charge into the mortgage. The FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month.
The above increases will impact all newly originated FHA mortgages for purchase and refinances, unless the homeowner qualifies for the new reduced mortgage insurance rates with an FHA streamlined refinance. The changes to mortgage insurance do not apply to FHA’s reverse mortgages.
FHA Streamlined Refinances will have reduced FHA mortgage insurance premiums IF the FHA loan being refinanced was endorsed on or before May 31, 2009, effective on case numbers issued on or after June 11, 2012. Upfront mortgage insurance premiums will be reduced from 1% to 0.01% of the base loan amount and the annual mortgage insurance will be reduced to 0.55% of the loan amount. Borrowers must be current on their existing FHA insured mortgage.
If your FHA loan being refinanced was endorsed June 1, 2009 or later, then the reduced rate does not apply.
To find out more information, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.
1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.
A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 280 sales associates and 50 employees based in 11 sales. In addition to residential sales, Ruhl&Ruhl REALTORS offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Brothers Agency. For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com
Tags: 1862 Mortgage, buying, Buying a Home, caroline ruhl, first time buyers, home buyer programs, housing market, Mortgage Insurance, mortgage interest, mortgage loan, mortgage rates, mortgages, Real Estate, Real Estate News, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, selling your home
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Wednesday, February 29th, 2012
A new financing package is being offered to help homeowners who have been unable to get traditional refinancing because the value of their home has declined.
The new Home Affordable Refinance Program (HARP) assists homeowners who have a higher loan balance than the current value of their home, yet allows refinancing into lower mortgage interest rates.
“This is a great opportunity for homeowners who have not been able to refinance and take advantage of current low rates,” said Jane Schneider, President of 1862 Mortgage, a participating lender. “I encourage those individuals to see if they qualify for this great new product.”
The loan must be owned or guaranteed by FreddieMac or FannieMae and the homeowner must have a good credit history. At this time, the new mortgage balance may not exceed 125% of the home’s current value.
To see if you qualify, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.
1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.
A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 280 sales associates and 50 employees based in 11 sales. In addition to residential sales, Ruhl&Ruhl REALTORS offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Brothers Agency. For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.
Tags: 1862 Mortgage, agents, buying, Buying a Home, caroline ruhl, home buyer programs, housing market, illinois real estate, iowa real estate, quad cities, Quad Cities Real Estate, Real Estate, Real Estate News, realtors, refinance, refinancing, refinancing your home, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
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Tuesday, February 14th, 2012
People are delaying the decision to buy a home because they are not sure where prices are headed. If they buy and prices continue to soften, they feel that they will not have purchased at the optimal moment. They reason that, if they sit and wait, they can’t be hurt. This thinking assumes that a non-decision comes without consequence.
The normal retort to this thinking by people bullish on real estate is that prices may soon turn to the positive or that interest rates will start heading upward. Buy now before the cost of buying increases! Today, we want to look at this from a different angle. We want to alert our readers that their housing expense is about to increase if they continue to rent.
Currently, in most parts of the country, buying is less expensive than renting. Plus, purchasers can lock in their housing expense for the next thirty years by buying now. They will get a sensational price and a record low interest rate. What will happen if they continue to rent?
The Alternative to Buying
If a family continues to rent, they are looking at a housing expense which will rise with the market. Rental costs increase by 3% a year historically. But today’s rental market favors the landlord to a greater degree. Below is a graph of how rental prices have increased recently and where they are projected to go over the next few years based on a report from Marcus & Millichap.
Bottom Line
Hoping to save by delaying the purchase of a home may result in higher housing costs while you’re waiting, thus achieving the exact opposite result. Check with a local real estate professional to determine the best option for you and your family.
Visit RuhlHomes.com for the most up to date information on the housing market and to search active properties in the surrounding area.
Blog provided by: KCM Blog
Tags: 1862 Mortgage, agents, buying, Buying a Home, caroline ruhl, first time buyers, home, home renters, home search, housing market, illinois real estate, iowa real estate, quad cities, Quad Cities Real Estate, Real Estate, Real Estate Sales Volume, realtors, rent prices, rental, rental homes, renter, renting, renting vs. buying, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume
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Wednesday, January 18th, 2012
A new financing package is being offered to help all qualified Illinois veterans, active military personnel, reservists and Illinois National Guard Members with the purchase of a home.
The financing package, Welcome Home Heroes, through the Illinois Housing Development Authority provides qualified veterans or active reservists a $10,000 forgivable loan over two years for down payment and closing cost assistance, 30-year fixed rate mortgage that has an affordable interest rate and an optional mortgage credit certificate to reduce federal income tax liability.
“This is a great program that all service personnel should take advantage of,” said Jane Schneider, President of 1862 Mortgage, an IHDA approved lender offering the package. “Time is of the essence, as only $10 Million total is available.”
The Welcome Home Heroes financing package is designed to assist qualified Illinois veterans, who do not need to be first time homebuyers, and active military personnel, reservists and Illinois National Guard members, who must be first time homebuyers. All buyers must qualify based on income and purchase price limits, and the home must be purchased as their primary residence within the state of Illinois.
Interested buyers please contact 1862 Mortgage loan officer, McKenzie Mathews, for additional information at 309.743.8060 or McKenzie.Mathews@1862Mortgage.com.
1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.
A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 280 sales associates and 50 employees based in 11 sales. In addition to residential sales, Ruhl&Ruhl REALTORS offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Brothers Agency. For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.
Tags: 1862 Mortgage, agents, Building, buying, Buying a Home, caroline ruhl, first time buyers, home buyer programs, home search, housing market, illinois real estate, illinois real estate communities, Illinois Real Estate Market, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, Real Estate News, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
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Friday, December 16th, 2011
One thing many real estate agents have learned is the importance of having a team of professionals to facilitate a smooth transaction. Having a lending expert on the team, can make available the following services to you…all for FREE:
- They stand ready to screen all potential buyers. Today’s lending landscape is a rapidly changing environment. Programs and requirements are changing regularly. A good loan officer should have a reputation for being on top of current guidelines and finding the best solutions for prospective clients. You need to know that when you accept an offer, the buyer can actually close.
- Financing is an important component to getting a home sold. Whether it’s marketing flyers, carrying costs, unique mortgage strategies (such as buy-downs and Sales Concessions) or even loan programs to differentiate your home (ex. loans that can incorporate monies for the purchase and renovation of a home), the best loan officers take pride in their ability to help increase the number of people for whom your home could be a fit. More prospects equals higher sales prices.
- In so far as a professional loan officer is seen as an educator, they would want to offer you the chance to tune into some of their online seminars (called webinars) and videos. As an example, some lenders have webinars with topics ranging from “How Lenders Look At A Mortgage Application” to “Renovation Lending” to “Getting Your Optimal Credit Score”, as well as videos that can fully explain your Good Faith Estimate. They are constantly striving to be a resource for everyone they come in contact with.
- Lastly, your loan officer knows that most home sellers become home buyers. Not only will they run your credit and analyze your income and assets, but they will also pre-approve you for your next mortgage, typically free of charge.
Did you know that Ruhl&Ruhl is partnered with 1862 Mortgage to make the buying and selling process of your home as seemless as possible. There are many other advantages of choosing a Ruhl&Ruhl agent. Check them out on RuhlHomes.com.
Provided by: KCM Blog
Tags: 1862, 1862 Mortgage, agents, applying for a mortgage, broker-lender, buying, Buying a Home, caroline ruhl, first time buyers, home, home buyer programs, home lender, housing market, illinois real estate, iowa real estate, mortgage application, quad cities, Quad Cities Real Estate, Real Estate, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, selling, selling your home
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Friday, November 4th, 2011
Ruhl&Ruhl realizes that when the idea or dream of purchasing a home starts to circle around in your mind, majority of the time the title above does not accompany that thought. And while this type of situation is unbelievably frustrating, keep in mind that you do have options. Ruhl&Ruhl Realtors along with 1862 Mortgage is here to help.
Let’s start from the beginning, say you have begun your home search and you meet with a Lender. That Lender will review your credit along with income and assets to determine if you qualify for a new loan. What happens when you find out you do not qualify?
First, find out what steps you will need to take to get qualified. These may vary and include a credit improvement plan, a savings plan to accumulate your down payment and closing costs and/or a plan for how long you must be on your job or earning variable income.
These are steps that you can work on to become a preferred buyer. They may take a few months or a few years, if you have had a more serious credit event such as a recent foreclosure or bankruptcy. However isn’t it important to get and work on a plan if you truly want to purchase a home?
An important thing to keep in mind is that you will want to find and work with a lender that has the time to assist you in making these steps a reality. You do need to know there is no “Magic Bullet” and that it will take work and discipline on your part.
Mortgage qualification guidelines are still constantly changing and in most cases tightening. It may not get easier for anyone to qualify for a mortgage loan in the short term. We at Ruhl&Ruhl Realtors partnered with 1862 Mortgage will always be here to help you achieve that next step. The pre-approval process is completely free. Our 1862 Mortgage Loan Officers are trained to help you improve and plan so you can work towards the goal of homeownership.
Please call 563-441-1776 or visit RuhlHomes.com/Mortgages to get pre-approved or to speak with a loan officer today.
some infomration provided from Allen Tate Blog.
Tags: 1862 Mortgage, buying, Buying a Home, caroline ruhl, first time buyers, home buyer programs, home loan, mortgage, mortgage loan, mortgage pre-approval, pre-approval, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
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Tuesday, June 21st, 2011
As prices continue to soften, more and more homeowners will fall into a position of negative equity on their homes. This means that the balance on their mortgage is greater than the value of their home. The reason this is important is that people are more prone to strategically default on their mortgage when ‘underwater’.
What is a strategic default?
Let’s first define strategic default in simple terms. According to Wikipedia:
A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.
This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house’s price such that the debt owed is (considerably) greater than the value of the property – the property negative equity or “underwater” – and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called “walkaways.”
This definition itself serves as the explanation as to why people will default.
How do Americans view strategic default?
In Fannie Mae‘s recent National Housing Survey, they shed some light on American’s thoughts on strategic default.
- The number of underwater homeowners who believe it is okay to default on your mortgage if you are under financial distress has almost doubled in the last twelve months (14% to 27%).
- 47% of people that are underwater and behind on their mortgage have considered strategic default.
- Those who know a strategic defaulter are more likely to have considered defaulting.
- 1 in 5 Americans knows a strategic defaulter
Bottom Line
As more people enter into negative equity, more will be tempted to ‘walk away’ from their mortgage obligations. If they do walk, that will increase the number of homes entering foreclosure.
Keep checking RuhlHomes.com for more information on the housing market.
Provided By: KCM Blog
Tags: 1862 Mortgage, agents, buying, Buying a Home, caroline ruhl, defaulting on a loan, first time buyers, foreclosure, foreclosure market, home, home buyer programs, home loan, home underwater, housing market, illinois real estate, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, mortgage default, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, realtors, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, strategic default
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Friday, June 10th, 2011
When it comes to private mortgage insurance (MI), there are several myths that exist that make buyers reluctant to consider a conventional loan with MI as an option when purchasing a home. One of the more common misconceptions is that cancelling MI is a difficult—not to mention time-consuming—process.
The irony is that the majority of buyers don’t harbor those same beliefs or reservations about an FHA insured loan when, in reality, FHA coverage may be less easily cancelled, or take longer to cancel, than MI.
HPA Makes Cancellation Clearer
When it went into effect as a new federal law, the Homeowners Protection Act (HPA) of 1998—which applies to both FHA and MI insured loans—required lenders and servicers to provide disclosures regarding MI for residential loans obtained on or after July 29, 1999. Prior to this, consumers were responsible for requesting MI cancellation if they met two factors: one, their loan balance was paid down to 80 percent of the property; and two, they had a good payment history.
While many lenders obliged consumer requests to drop MI coverage, consumers had sole responsibility for keeping track of their loan balance.
The HPA established three different times when a lender or servicer must notify consumers of their rights.
At loan closing, lenders must disclose:
• The right to request MI cancellation and the date on which the request can be made
• The requirement that MI be automatically terminated and the date on which this will occur
• Any exemptions to the right to cancellation or automatic termination
• A written initial amortization schedule for fixed-rate loans only
Each year, loan servicers must send borrowers a written statement that discloses:
• The right to cancel or terminate MI
• An address and telephone number to contact the loan servicer for determining when MI may be cancelled
When MI coverage is cancelled or terminated, lenders must send a notification to borrowers stating:
• MI has been terminated, and the borrower no longer has MI coverage
• No further MI premiums are due
Termination of Coverage
Under the terms of the HPA, mortgage lenders or servicers must automatically cancel borrower-paid MI coverage when the mortgage has amortized to 78 percent of the original property value, with all unearned premiums returned to the borrower within 45 days of the cancellation or termination date. This provision also requires that the borrower be current on mortgage payments required by the terms of the loan, and if the loan is delinquent on the date of automatic termination, a lender must terminate the coverage as soon as the loan becomes current.
Cancellation of Coverage
Also under the HPA, a homeowner has the right to request MI cancellation when the mortgage balance reaches 80 percent of the original property value. All payments must be current, meaning a homeowner must not be 30 days late on a mortgage payment within one year of their request, or 60 days late within two years.
However, a borrower can only initiate a cancellation request for FHA based on their prepayment of the loan, and even then, it can only be requested beginning five years after the loan origination date.
With MI, homeowners can request cancellation based on prepayment of the loan, as well as an appraisal. Despite falling property values, it’s possible for homeowners to gain enough equity in their home to request cancellation in less than five years based on a home appraisal.
Keep checking RuhlHomes.com for more information on the housing market.
Provided by: RisMedia
Tags: 1862, 1862 Mortgage, agents, buying, Buying a Home, caroline ruhl, FHA loan, home, home buyer programs, Home protection act, home search, housing market, HPA, Illinois Real Estate Market, Iowa Real Estate Market, Mortgage Insurance, private mortgage insurance, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, quad city, Real Estate, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
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