Emerald Mortgage Compay is a privately owned
Utah corporation and residential mortgage brokerage firm.
Delivering superior, personalized service on every loan.
603 E 4500 South, Suite 100 | PO BOX 57563 | Salt Lake City, Utah 84157 | Office: (801) 269-9600 | Fax: (801) 269-8137 | Email
About Emerald
Mortgage Company
Mortgage Insurance
PMI=Private Mortgage Insurance; FHA-MIP=FHA Mortgage Insurance Premium
Lenders require mortgage insurance for protection in the event the borrower defaults on a low-downpayment or small equity loan.
PMI is required on loans over 80% LTV (20% or less “EQUITY”). Premiums are based on the amount of downpayment or equity and are included in the borrower’s total monthly mortgage payment.
CANCELLATION OF CONVENTIONAL LOAN PMI:
The Homeowner’s Protection Act, a federal law passed in 1999, requires lenders to cancel the PMI on standard conventional loans and reduce the monthly payment by eliminating the PMI premium when there is adequate equity in the property and there is a good payment record on the loan.
AUTOMATIC TERMINATION: Lenders must automatically cancel the PMI when the mortgage balance is reduced to 78% of the original value of the property.
BORROWER-INITIATED CANCELLATION: Borrower’s may request PMI cancellation when they have 20% or more equity (80% or less LTV) based on the unpaid loan balance compared to the current market value of the property.
Lenders provide an annual disclosure explaining the borrower’s right to request cancellation of PMI . Check with your servicing lender (where you send your monthly mortgage payment) for details and specifics for your situation.
Click here for additional consumer information on PMI.
FHA loans require both an upfront payment (UFMIP-added into the loan) and a monthly FHA-MIP payment for mortgage insurance with two notable exceptions: Condo loans require only the monthly FHA-MIP (no UFMIP) for the life of the loan; 15-year loans on houses/PUD units with an LTV of less than 90% require only the UFMIP (no monthly FHA-MIP).
FHA-UFMIP REFUNDS: Borrowers who prepay their FHA loans during the first five years are eligible for a refund of unearned UFMIP based on how long their loan was outstanding.
CANCELLATION OF MONTHLY FHA-MIP: FHA-MIP can be canceled after five years when the loan is paid down to 78% of the original value of the property.
Emerald Mortgage Company is an Equal Opportunity Lender.
For more information on what this means visit the FDIC website.
© 2004, Emerald Mortgage Company
