Monday, January 09, 2006

Can high credit score help cancel mortgage insurance?


How are you doing on this new year?

I am giving you an interesting quote I just read which may help you guys. :)
DEAR BOB: I have a FICO (Fair Isaac Corp.) credit score of 750 and wonder why I am still paying PMI (private mortgage insurance)? --Jennifer R.

DEAR JENNIFER: Congratulations on your superb FICO credit score. However, that has nothing to do with your obligation to pay PMI.

Purchase Bob Bruss reports online.

When you bought your house or condo, you probably paid little or no cash down payment. Because of your high FICO credit score, your lender approved a high loan-to-value-ratio mortgage. But the lender insisted on PMI to eliminate its high foreclosure loss risk.

After you achieve at least 20 percent equity in your house or condo, ask your mortgage lender to cancel your PMI premium, which is then unnecessary to protect the lender's 80 percent or lower mortgage. Until you have at least 20 percent equity, your lender still views you as a high risk, which requires PMI to protect the lender.

However, until your home loan has at least 24 months of on-time monthly payments, most mortgage lenders will refuse to cancel PMI. Some especially nasty lenders won't cancel PMI until the loan balance declines below 80 percent of its original balance, ignoring your home improvements and market value appreciation.

That usually takes 10 to 15 years, depending on your interest rate. If you have one of these really bad lenders, my best advice is refinance with a better lender who doesn't require PMI.

Can high credit score help cancel mortgage insurance?

Johncy Edward

Your Trusted Credit Score Guru

Reasons Against Cash Advances

You should carefully weigh the problems that may occur when you receive a cash advance. The repayment requirements may be stiff. Missing even one payment can cause your interest rate to steeply rise to up to 30%.

Even though most cash advances are for small loans, you may find some companies that will allow you to borrow up to $1500 without a credit check. Most of these companies will require you to gradually work your way up to $1500 starting with a small loan and then gradually increasing up to $1500.

Getting a cash advance from most companies is very easy and you can borrow with just your valid ID and pay stubs, however, some companies need more information. That is why it is important to call the cash advance company in advance to see what is required.

You may solve your financial problems for a little while after you receive your loan, but it is important that you budget your money wisely to make sure you make your payments on time.

The repayment plan must be carefully considered to ensure that you don't end up in a bigger financial mess. Some people cannot make the payments and end up in a hole of debt that they cannot get out of. Many of the cash advance companies that have unfair payment plans are the ones that loan money without a credit check.

You CAN wait until you get your paycheck to take care of that unforeseen expense. You don't want to end up in a financial hole that you cannot get out of.

Cash Advances Of $1000 Based On Provable Income Many loan companies allow their customers to borrow around $1000 if you pay...

Cash Advances Of $1000 Based On Provable Income

Many loan companies allow their customers to borrow around $1000 if you pay it back according to their payment schedule. You need to know, however, that you will end up repaying the cash advance company a lot more than you borrowed because of the high interest that is added to the cash advance.

A few of the cash advance companies do not loan out large amounts of money like this, however, and they stay with loans up to around $500. However, there are times that you may need a larger amount so don't depend upon a certain cash advance company to loan you as much money as you need. You could end up being disappointed.

Many people see a cash advance loan as their last resort because they have no other options for getting a loan. Many people say that cash advances should only be used if you are borrowing a small amount of money that the normal loan channels will not help you with. Many of the loan companies cannot loan less than $1000, but cash advance companies may see your $1000 loan as a large loan and add on a large interest rate as well.

If you can find a loan company that will loan you $1000 then that is the best decision. This is because the loan company will most likely charge you a much lower interest rate than the cash advance company will, which will make the terms of your loan easier to meet.

eXTReMe Tracker