Cancelling Private Mortgage Insurance

Happy Friday and Fourth of July!

Please see attached a great chart on Conventional Mortgage Insurance Cancellation. Feel free to use this in an update to clients and prospects or in any newsletter.  Or, your client can simply call me for the information over the phone.  🙂

Be safe!

Don

Mortgage Insurance Cancellation – What You Need to Know

mortgage-ins-250Effective July 29, 1999, the Homeowners Protection Act (HPA or Act) requires that private mortgage insurance be cancelled when a loan reaches certain, specified thresholds. The Act’s MI cancellation policy applies to privately insured first mortgages:

  • on single-family, primary residences, AND
  • closed on or after July 29, 1999, AND
  • for the purpose of financing the acquisition, initial construction or refinancing of the dwelling.

Following the HPA’s lead, Fannie Mae and Freddie Mac have  updated their own MI cancellation policies, in accordance with the Act, for privately insured first mortgages.

For more information, please check out the informative free downloads here:

 

Mortgage Insurance – Tax-Deductible?

(courtesy of MGIC Insurance, with some editing)

MI Tax Deductibility passed as part of the American Taxpayer Relief Act of 2012.

Borrower-paid MI premiums are tax-deductible through the year 2013. Borrowers should consult their tax advisors regarding MI tax deductibility. See disclaimer note below. [Read more…]