As we have discussed before, the popularity of relying on private mortgage insurance to buy a home is gaining popularity. Traditionally mortgage lenders have required home buyers to put anywhere from 10-20% down on a house in order to qualify for a mortgage. The introduction of private mortgage insurance has of course eliminated the necessity for such a large down payment.
Before you jump into a mortgage that includes private mortgage insuranceyou should understand a few things regarding the laws and regulations related to this component of a mortgage. For starters, it is important to note the private mortgage insurance provides protection to the mortgage lender. Many people incorrectly assume private mortgage insurance provides protection to the home owner. This is simply not the case. Lenders that are willing to approve mortgages for buyers who are not providing a substantial down payment desire protection in the case of a default. Private mortgage insurance offers the lender this assurance.
If you are a home buyer and are not able to come up with down payment big enough to have the private mortgage insurance requirement waived by your lender then there are a few things you should know. As a home buyer you are not required by law to pay private mortgage insurance forever. In fact, in 1998 the Homeowners Protection Act was passed to help protect the consumer from paying unneeded private mortgage insurance fees. According to the act, once you have realized 20 percent equity in your home you are no longer required to pay private mortgage insurance and therefore have the right to cancel this coverage. Unfortunately your mortgage lender is under no legal obligation to notify you when you have indeed reached the 20 percent equity level. Fortunately the law does state that once the home buyer has realized 22 percent equity in their property then the mortgage lender is legally required to terminate the private mortgage insurance payment.
As you might expect, there are of course more complications surrounding the Homeowners Protection Act of 1998. The preceding information is general outline of key information you should know before you start paying private mortgage insurance. If you are interested in more information or details regarding private mortgage insurance or the Homeowners Protection Act of 1998 please visit Insure.com.
Another avenue for information regarding your private mortgage insurance is your lender. You should be able to acquire the written terms and conditions for your private mortgage insurance. Your lender should also be able to answer any additional questions regarding private mortgage insurance before you sign on the bottom line.
Spending the Millionaire Cash Flow
Are you sure you want to be rich? I mean really rich? Like the kind of rich where you have so much cash flow coming in you don’t even know what do with all this money – except for swim in it. Being a millionaire would definitely be great. Think about all the great things you could do with your millions in cash flow.
The One Great Way to Make Money
Is there one great way to make money? The simple answer is no. In fact there are a variety of great ways to make money. Just ask Robert Allen or Mark Victor Hansen, two of America’s foremost experts on creating wealth. A few of the great ways to make money include investment (be it in real estate, mutual funds, stocks etc.), entrepreneurial ventures, or via rapid corporate promotions. Each path to wealth offers its own unique advantages, but if you are looking for the one great way to make money that anybody can follow then you have come to the right place.
Management Fundamentals
For beginning business students learning the business terminology will go a long way in ensuring you perform well in your classes. Not all families have a strong business pedigree and many of us must learn the business basics the old fashioned way – on our own. If you don’t know what management is or what the financial reporting process entails, then this is a great place to start. To jump start your busing understanding here is a brief overview of some fundamental business terms.
