Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year

Private Mortgage Insurance, PMI, refers to insurance provided by non-government insurers that protects lenders against loss if a borrower defaults and usually comes into force when homebuyers make a down payment less than 20% of the home's purchase price. According to the Federal Trade Commission, The Homeowners Protection Act of 1998 establishes rules for automatic termination and borrower cancellation of PMI on home mortgages. The article highlights details wherein homebuyers can avail of benefits on home mortgages signed on or after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. [ Federal Trade Commission, 2006]

Six Key Negotiation Tips For Home Buyers And Sellers

Success in a slowing real estate market requires paying greater attention to negotiation skills. According to SouthCoastToday.com, there are six key questions for home buyers and sellers to get answered for a successful home sale negotiation. Few of them are why is the seller selling this lovely home, what was the home seller’s purchase price, what is the buyer’s motivation to purchase my home, has the sellers obtained a professional home inspection report. When negotiating a home sale, sellers and buyers cannot ask too many questions to enhance their negotiation position. The prime reason is to determine how motivated the other party is to buy or sell. However, if the other party is highly motivated, then you are in a strong circumstance to negotiate your strongest price and terms. [Robert J. Bruss, SouthCoastToday.com, 2005]