The Homeowner Protection Act of 1998, also sometimes referred to as the Private Mortgage Insurance Repeal (PMI) Act, is legislation designed to reduce unnecessary private mortgage insurance payments from homeowners who may no longer be required to pay.
Private mortgage insurance can be canceled as soon as the borrower pays off a sufficient portion of the principal amount of the mortgage (usually when his net worth reaches 20%) or when his loan-to-value ratio (LTV) reaches 80%.
However, prior to the passage of the Homeowner Protection Act, many homeowners had problems opting out of private mortgage insurance.
Under the Homeowner Protection Act, private mortgage insurance must automatically terminate for homeowners who have accumulated the required amount of home equity in their homes; the law also mandates the disclosure of certain information about private mortgage insurance and simplifies the cancellation process, among other provisions.
2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years.
A 5/6 Adjustable Rate Hybrid Mortgage (ARM 5/6 Hybrid) is a fixed rate mortgage for the first five years and then adjusted every six months thereafter.
An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash.
Illegal possession is a legal process whereby a person who is not the owner of a piece of land acquires title and ownership of that land after a certain period of time.
A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property.
The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid.
An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home.