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Juanita Said:

How can I find out if I am due a refund from Mortgage Insurance that is unclaimed on a home we owned?

We Answered:

Private Mortgage Insurance (PMI) is there to protect the lender in case you default on your loan. If you stop making payments, they will evict you and the lender will take back the property. In the process, it may be that the lender loses $2000 because they value of the property has decreased. If that is the case, the PMI company will cut a check to the lender for $2000 to make him "whole."

The purpose of Mortgage Insurance is to protect the lender from losing money (not you). If you made a downpayment of 10%, then the LTV (Loan-to-Value ratio) on the loan is 90%. For example, if the property is worth $100,000 and you put down $10,000 and the loan is for $90,000, then the LTV is 90. If you want the mortgage company to drop the PMI, then you should pay your mortgage down to an 80% LTV. Loans with an LTV of 80% or lower do not require Mortgage Insurance.

If you pay down the principal to 80% LTV, then the mortgage company will probably require you to pay for another appraisal (to revalidate the value of your property) to ensure that the LTV is truly lower than 80. (If your property has decreased in value, then LTV is raised automatically and you'll have to pay down even more principal). If you pay down the loan to well below 80 (such as 70 or below), the mortgage company MIGHT forget about the appraisal. (But I wouldn't count on it.)

The reason why lenders do not require MI on loans with an LTV of 80 or lower is that they figure if the borrower defaults, the property will not lose so much value that they won't be able to get their money back after selling the foreclosed-upon property. With an LTV of 90, it's still conceivable that property values could drop to the point that the lender would lose money if you defaulted.

Good luck!

Max Said:

Please help me decide between 2 mortgage loans.?

We Answered:

If you can afford to put 20% down, the the 2nd loan is superior to the FHA. The APR is lower, the principle balance is lower, and the monthly payment would be significantly lower because at 80% LTV you won't have to pay PMI. Given the nature of your income, etc, the lower payment keeps your overhead lower and reduces your risk of cash flow problems.

Anyone who recommends an FHA loan for someone with 700 FICO scores and the ability to put 20% down is giving you bad advice. Don't factor in the stock market stuff- you evaluate loans on their individual merit. FHA is for people who are cash poor and credit challenged. And no matter how much you pay it down, you'll always have MIP/PMI on it. As for possibly refinancing, you want a loan that you can live with just in case you are unable to refi.

One piece of advice I'd offer is to get a 30-year loan and still make the same payments as if it were a 15-year loan. That way, if the creek runs high, you'll have a lower minimum payment. If everything goes fine, you'll still pay it off in 15 years.

Good luck

Heidi Said:

Work from Home Processing Mortgage insurance refund?

We Answered:

If you are interested in working from home,you could check this site out for legitimate work from home jobs without any investment http://www.pcworkathome.net

Rose Said:

Is it better to use $50,000 as a mortgage down payment or to pay the one time premium and keep the balance?

We Answered:

According to the refund schedules for single premium mortgage insurance with RMIC and with MGIC they are both down to a zero refund after 60 months.

It is not as easy to tap the equity in your home these days as it was just a couple years ago, so if you feel better with your $50K in the bank and you can handle the higher payment this is one way to do it.

Edwin Said:

Has anyone had any experience with 3rd party tracer?

We Answered:

if you have to put up a bunch of money first, this is some kind of scam, it would go through legitimate channels just like every other job out there.and no govornment job or an affiliate there of would ever require you to pay out money in advance my advice, keep looking

Marsha Said:

looking for a unclaimed mortgage insurance check?

We Answered:

~~Just contact the mortgage company who issued it and tell them you never received it. They can put a stop payment on it and issue a new one.

If this is something which happened many years ago and you believe your state is now holding then you can go to www.missingmoney.com which helps you locate money by the state it was lost in.~~