Mortgage
Insurance

S 318, the "Homeowners Protection Act of 1998" has been signed by President Clinton.  This will allow homeowners to cancel their private mortgage insurance when 20% equity (80 LTV) is achieved.  It also provides for automatic cancellation at 22% equity (78 LTV). Homeowners must be current on their payments and can not have any subordinate liens against the property, etc...

Requests would have to be made in writing...
 
Mortgage insurance would terminate at mid-life for "high risk" mortgages that do not exceed Fannie Mae and Freddie Mac conforming loan limits ($240,000 as of 12/18/98), and for those high risk mortgages above the conforming loan limits, cancellation would terminate at 23% equity (77LTV).  Fannie Mae and Freddie Mac have been directed to establish industry guidelines for defining a "risky" borrower.

The above information, though believed accurate, is not guaranteed call or email for up to date guidelines ... 

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