PMI - Private Mortgage Insurance - Pay Down Your Debt & Remove This Added Expense

Let's talk PMI

PMI literally is defined as Private Mortgage Insurance and is typically required to be purchased when a buyer puts less than 20% down on a property for sale.  Paying a premium is not a problem in many cases and it allows buyers to purchase now instead of waiting until they have more money for a down payment. Today we will dig a layer deeper with our friends at http://currentmortgagerates.org - as they have some good ideas and help to understand PMI and your rights.

Sometimes the housing market changes radically and you end up paying mortgage on a home that has lost significant market value since it was purchased. This situation has become very common in the last few years, since the housing bubble burst and the US went into a recession. Many home owners have found themselves having to make the same large monthly payment on a home that is worth much less than before the recession. When this happens, homes become really hard to sell because their value is less than what the owners owe on their mortgages. Because of this, many homes were classified as distressed, creating large financial problems for home owners who wish to sell. Being underwater on your mortgage and having to pay Private Mortgage Insurance on top of the high monthly payments makes it very difficult for home owners to keep their home. Abandoning the home and buying another one, which will have a lower monthly payment, seems like a better alternative (please keep in mind you do have options)!

The Homeowners Protection Act of 1998 states that Private Mortgage Insurance can be canceled when you reach 20 percent equity in your home.  When the equity in your home reaches 22 percent, PMI should be dropped automatically, but many times lenders don't remove the policy until they are reminded.  Unfortunately, many home owners don't know this.  If you are underwater on your mortgage, this doesn't have to factor in the process and you can have your PMI canceled; if you qualify.

Qualifying to have your PMI Canceled You Need:

• The equity in your home has to be 20 percent or larger.

• Your monthly mortgage payments must be up to date with no missed payments.

NO MISSED PAYMENTS!

• Some lenders require that you do not have any late mortgage payments in the last 6 months.

• You must have been the owner of the home for at least 2 years.

• There must not be any second liens on your property, such as a home equity loan / line of credit or a second mortgage.

• The property must not be a vacation home.

NO VACATION HOMES!

The corresponding national laws states that the Private Mortgage Insurance must be canceled once the equity in your home reaches 22 percent.  This is the reality, but you must be prepared to have a difficult time getting your lender to actually do it.  Similar to using a great discount coupon, a retailer will let you do it, but they aren't necessarily going to call you and tell you that the coupon is available. You likely may have to send them several documents related to your mortgage and a letter requesting the cancellation. Your lender has all of this information already, so this is done mostly to prove to them that you are an informed customer. We all are looking for ways to save money on a day to day basis &  fortunately, by canceling your Private Mortgage Insurance you can free up some much needed cash, which will certainly make your life easier!

Have a great week & if you know anyone in need of more information about getting out from under PMI once you reach the necessary threshold, we can help!

Christopher Cribb - The Bubb Cribb Team 
Reece & Nichols - Southgate  Direct Line 913.239.2023

10 Things You Should Clean--But Don't

You touch it. Other people touch it. But do you ever clean it?

We're talking about everyday items that most people never think to swab down, such as credit cards, ceiling fans and toilet paper holders.  In conjunction with The Huffington Post  we assembled a list of the top 10 most dirty, dusty, and germ ridden places in your home and how to clean them.

Print this out! It's your weekend to-do list.

1. Credit/Debit Cards - You're not the only one handling your credit and debit cards. Other people touch them, too--and who knows when they last washed their hands or what they touched five minutes ago. Even if you only swipe your card and never hand it over, what is lurking inside that card-swipe machine or ATM? Grab some disinfectant wipes and take a minute or two to clean your credit cards. Do let them dry completely before returning them to your wallet.


2. Electronics - Your electronics--from your cell phone to your e-reader--are coated in germs and the level of contamination is horrible. Some studies show cell phones contain 18 times more germs than toilet handles. Swab them down with disinfectant wipes.

3. Toothbrush Holders - Want to see something gross? Take your toothbrush out of the holder and peer inside. Do you see mold? Discoloration? Grime? That could end up in your mouth! Pour a solution of one part bleach and three parts water into the toothbrush holder and let it soak for an hour. Rinse and dry upside down on a dish rack.

4. The Bottom of Throw Rugs - This is easy and fast to do and will help keep your wood floors cleaner for a longer time. When vacuuming, turn over the throw rugs and vacuum the underside.

5. The Top of Large Appliances - They're too tall for you to see it with a step stool, but the top of your refrigerator, stove vents and other big appliances are dusty and grimy on top. Wipe down the surfaces with white vinegar and rinse with a water-lemon mixture. Dry it with a clean cloth. If you can move them, do the same thing with the bottom of the appliances.

6. Ceiling Fans - Pull out a ladder and look at the top of your ceiling fans. Chances are, there is a thick layer of dust on them, which could contain residue particles that resemble mold on ripe fruit. Turn on the fan, and those particles are dispersed throughout the room. To clean the top of the ceiling fan, put two tablespoons of white vinegar and water in a spray bottle. Spritz the solution into an old pillowcase. Insert the pillowcase around the fan blade and drag the bag along the bag's surface. This will collect and clean the dust. Use a clean cloth to clean up anything that remains on the blades.

7. Toilet Roll Holders - When you flush the commode, water inside the toilet bowl is sprayed around the area--including the toilet roll holder. Disinfect it once a month with a sanitizing wipe or clean it with a bleach and water solution.

8. Box Springs - Ever look underneath your bed? Chances are the box spring is covered in dust. It's easy to clean with a vacuum hose.

9. Light Switches - Bacteria is easily and quickly transferred from person to person in your home just by touching the light switches. Spray rubbing alcohol or an all-purpose cleaner into a clean cloth and wipe the switch and plate until they are clean and grease-free.

10. Salt and Pepper Shakers - When the salt and pepper shakers are empty, clean them in the dishwasher before refilling them. These common household items are known to contain the highest concentrations of germs that cause cold and flu viruses. Between washing's, use disinfectant wipes to sanitize the outside surface.

Have a great day and stay clean!

Christopher Cribb - The Bubb Cribb Team 
Reece & Nichols - Southgate  Direct Line 913.239.2023