Posted by Becca_FL on 1/26/06 10:35am
Msg #91340

TAMI - I learned something new yesterday.

I had a 90% LTV for Countrywide last night with a new version of MI that I had never seen. I have done many closings with the traditional borrower-paid Mtg. Ins., but this TAMI plan was new to me. Here's the scoop, for those of you that have not seen it yet.

Tax Advantage Mortgage Insurance (TAMI)

Tax Advantage Mortgage Insurance (TAMI) is lender-paid mortgage insurance that can offer you significant benefits that are not available with traditional mortgage insurance, including:

No MI premium paid at closing
You may have lower total monthly payments
You may save hundreds of dollars
TAMI may be tax deductible if you itemize deductions on your federal income tax return

I thought it was a pretty cool way to have MI paid.

Happy EOM!

Reply by Shane_OH on 1/26/06 10:45am
Msg #91344

Not much of a benefit....

In my eyes.... PMI or MI, really does nothing to protect the borrower, but more so the lender in case the borrower defaults or misses payments.

Most borrowers don't realize they can have their PMI removed after they pay down below 80% LTV.

Pays to learn all sides of this business that is for sure.

Reply by Becca_FL on 1/26/06 10:54am
Msg #91350

Re: Not much of a benefit....Shane

>>>Most borrowers don't realize they can have their PMI removed after they pay down below 80% LTV.<<<

Usually the TIL will show the drop in payment from the MI when LTV reaches 80%. When I did not see this reflected on the TIL, I found the TAMI disclosure. I copied the page that showed comparisions to BPMI and I must say, it looks good on paper.

Reply by PAW_Fl on 1/26/06 11:06am
Msg #91356

Re: Not much of a benefit....Shane

The TIL shouldn't reflect a drop in the payment until the LTV reaches 78% as this is the percentage that the lender is **suppose** to automatically cancel the MI. The borrower can request to have the MI canceled once the LTV falls below the 80% level.

Reply by BrendaTx on 1/26/06 1:32pm
Msg #91401

Re: Not much of a benefit....Shane

The bwrs occasionally ask me about this. I have been told they have been told it will require an appraisal to remove it.

Reply by John_NorCal on 1/26/06 1:59pm
Msg #91410

Re: Not much of a benefit....Shane

True they will need an appraisal, that shouldn't be too much of an issue for them especially if they live in an area of high r.e. appreciation.

Reply by Art_MD on 1/26/06 2:01pm
Msg #91411

Re: Not much of a benefit....Shane

Before having an appraisal done to get rid of PMI, make sure that the appraiser is approved by the lender. If not, they won't accept it. They want to avoid fraud/colusion(sp).

Art

Reply by PAW_Fl on 1/26/06 2:17pm
Msg #91427

Re: Not much of a benefit....Shane

They do not need to have the property reapraised UNLESS they are trying to have the PMI terminated before the date specified in the PMI Disclosure that shows when the LTV reaches 80% and 78%.

Reply by ReneeK_MI on 1/27/06 4:56am
Msg #91638

Re: Not much of a benefit....

Since there's no such thing as free lunches - especially when lender's picking up the tab - where's the hit to the borrower? There must surely be one - in the rate, probably? Anyone know?