Legal Question in Real Estate Law in Texas

Mortgage Insurance Premium

I was under the impression that there was a law passed that home buyers did not have to pay mortgage insurance premium if the house was purchased after a certain date. My friend is paying 72.00 a month MIP along with her regular insurance.

Please let me know if she can have them stop charging her for that.

Thanks,

Shellie Hoops


Asked on 10/05/03, 12:28 am

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Mortgage Insurance Premium

The payment (or not) of the MIP is based on the loan-to-value (LTV) ratio. Once the ratio has decreased to 80/20 (20% equity), application may be made to drop the MIP. Have your friend check with her lender on the procedures. They are required by law to furnish them.

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Answered on 10/05/03, 5:37 pm


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