dave@cylixd.UUCP (Dave Kirby) (09/18/85)
The current discussion on mortgage insurance reminds me of an article in the January 30, 1985 edition of the Wall Street Journal, which said that FHA and VA homeowners may be paying that 1/2% Mortgage Insurance Premium unnecessarily. Lenders require this insurance on loans with less than 10% down payment. But this insurance doesn't have to extend for the entire life of the loan. You can cancel it if your mortgage is less than 80% of your house's purchase price or the current appraised price. You can write the lender and ask them to cancel the insurance, thereby eliminating the MIP from your monthly note. According to the Federal Home Loan Bank Board, some lenders have cancelled their mortgage insurance policies and not notified the homeowner. They pocket the MIP themselves, of course. This is illegal, and carries with it criminal penalties for fraud, conversion, and whatever else you want to charge them with. So check out your lender. You may be getting ripped off of 1/2% "interest." ----------------------------------------------------------------- Dave Kirby ( ...!ihnp4!akgub!cylixd!dave) (The views expressed herein do not necessarily reflect those of RCA Cylix. They may not even reflect my own.)