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Path: utzoo!watmath!clyde!bonnie!akgua!akgub!cylixd!dave
From: dave@cylixd.UUCP (Dave Kirby)
Newsgroups: net.invest,net.consumers
Subject: You may be able to cancel your Mortgage Insurance Premium
Message-ID: <292@cylixd.UUCP>
Date: Wed, 18-Sep-85 11:48:14 EDT
Article-I.D.: cylixd.292
Posted: Wed Sep 18 11:48:14 1985
Date-Received: Thu, 19-Sep-85 05:27:44 EDT
Reply-To: dave@cylixd.UUCP (Dave Kirby)
Organization: RCA Cylix Communications , Memphis, TN
Lines: 23
Xref: watmath net.invest:751 net.consumers:3001

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.)


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