Can you save money on your existing loan??

Question: "Can I save money on my mortgage without having to refinance?"

http://www.occoastproperties.com/ Answer:

MAYBE! Aside from refinancing your loan or modifying it (which will impact your credit based on the fact the only those unable to make thier payments are modification candidates) how about CANCELLATION OF PMI (Private Mortage Insurance).

PMI, or Private Mortgage Insurance, is generally required by the lender or the investor when the borrower does not have a 20% downpayment. More precisely, mortgage insurance is required when the LTV, loan to value, exceeds 80% of the sales price. The borrower has the right to cancel thier mortgage insurance when certain requirements are met.

This can happen automatically or by requesting the lender to cancel.

The borrower's PMI will be automatically cancelled by the lender when both of the following conditions are met:

1. The mortgage balance is 78% of the home's original value and
2. All payments had been current on the loan

The borrower can send the lender a written request to cancel the PMI when all of the conditions are met:

1. The mortgage balance is 80% of the original value of the property
2. The mortgage payments were paid in a timely manner
3. No other loans have been taken out on the home
4. The property value has not declined